EGBs have opened the last trading day...>

EGB SUMMARY: EGBs have opened the last trading day of the week lower, with yield

curve steeper as the long end underperforms with attention currently on the rise

in US Treasury 10-yr yield which has hit highest level since Sep 2014. German

10-yr yield is 1.5bp higher at 0.588% with 2s/30s 2.4bp steeper.

- Markets also digesting latest Bloomberg survey of economists that shows they

have brought forward estimate of QE end date and see first change in forward

guidance in March. On Rates the BBG survey showed the deposit rate rising to

-0.25bp by Q2 2019 and increase over next 3-months.

- Eurozone data is limited to ECB November current account numbers at 0900GMT,

while EGB supply looks to have been completed this week.

- EMU periphery are fairing slightly better than core/semi-core with markets

looking ahead to rating update on Spain from Fitch and on Greece from S&P.

Analysts see a good chance that Fitch will upgrade Spain from BBB+.

- Markets also looking ahead to special SPD party congress vote on entering

formal Grand Coalition talks with CDU/CSU on Sunday. Before then however there

is the question on US spending bill an possible government shutdown.