EGBs have pushed higher almost..........>

EGB SUMMARY: EGBs have pushed higher almost relentlessly since 0800GMT,

continuing in the afternoon following comments by US military officials on

potential action against allegedly Iran-backed militias in Iraq.

- Dec PMI data this morning not much of a driver in the end, with Italy missing

and Spain beating consensus; UK/EZ/DE/FR final numbers largely in line.

- 10-Yr Bunds pulled back from multi-month highs (-0.16%), last trading -0.236%.

- Italian spreads widened sharply in early trade but have stabilised, 10-Yr BTP

last 3.3bps wider to Bunds at 163bps. Nominal yields touched multi-month highs.

- Friday to be highlighted by German and French inflation data.

** Latest levels:

* Mar Bund futures (RX) up 85 ticks at 171.34 (L: 170.19 / H: 171.39)

* Germany: The 2-Yr yield is down 0.3bps at -0.605%, 5-Yr is down 4.3bps at

-0.516%, 10-Yr is down 4.7bps at -0.233%, and 30-Yr is down 5bps at 0.299%.

* Mar BTP futures (IK) up 16 ticks at 142.62 (L: 141.58 / H: 142.94)

* Italy / German 10-Yr spread 3.4bps wider at 163.1bps

* Mar OAT futures (OA) up 79 ticks at 163.56 (L: 162.51 / H: 163.64)