EGBs have opened mixed after a choppy...>

EGB SUMMARY: EGBs have opened mixed after a choppy Thursday. Bunds have opened

slightly higher (Dec18 future up 2 ticks at 159.48); the curve is a little

steeper, with 2-Yr yields down 0.5bps at -0.547% and 10-Yr up 0.4bps at 0.426%.

- Italian BTPs are weaker (2-Yr yield up 1.6bps at 0.857%, 10-Yr yield up 2.6bps

at 2.977%) following mixed headlines out of the country this morning.

- Deputy PM Di Maio gave reassurances in an interview with Spanish press that

Italy will not break with the EU, but this contrasted with the deputy Fin Min

Castelli saying the costly 'citizen`s income' would begin Jan 1; another report

in Sole cited sources that spending cuts could free up E4-5bln for spending.

- Belgian government debt could rise by more than E2bln (0.5% of GDP) if the

debt of railway operator Infrabel is taken into account by Eurostat, reported

L'Echo. 10-Yr Belgian yields up 0.3bps at 0.757%.

- Euribor futures largely unchanged, with Thursday`s ECB meeting seemingly

having little lasting impact.

- Highlights this morning include ECB GC's Nowotny speaking at 0800GMT and EZ Q2

labour costs/Jul trade balance at 0900GMT.