EGBs have come off their intraday.......>

EGB SUMMARY: EGBs have come off their intraday highs but remain up on the day as

a fairly quiet trading week drew to a close.

- German Bunds came off their highs in mid-afternoon with US President Trump

rowing back on threats to withhold a free trade deal with the UK due to PM May's

Brexit proposal, but concluded a strong week. Sep8 futures up 28 ticks at 163.05

(the high was 163.22).

- Italian BTP yields came down, with FinMin Tria reassuring markets following

meetings with the EU that the new government will focus on bringing down the

debt burden. 10-year yields are down 6.8bps at 2.555%, with the spread over

Bunds 4.8bps narrower at 221.1bps.

- Spanish, Portuguese and Greek spreads vs Bunds were largely unchanged (+/-

1bps) as the rest of the EMU periphery lagged the Italian rally.

- Euribor futures partially gave up significant earlier gains, with Blue

contracts up 1.0-1.5 ticks, having risen 2.5-3.0 ticks earlier.

- Going into the weekend, potentially notable are EMU rating reviews due after

the close (DBRS on Italy, Fitch on Spain); US Fed reports to Congress 1600BST.