EGBs have started the session on a......>

EGB SUMMARY: EGBs have started the session on a weaker footing, with

core-periphery spreads a touch wider. German industrial production data for

January surprised lower (-0.8% M/M vs 0.5% survey), compounding a slew of

weak/disappointing data releases for the wider euro area.

- German bund yields are marginally higher from Friday's close. Current yield

levels: 2-year -0.543%, 5-year -0.351%, 10-year 0.068%, 30-year 0.715%.

- French OATs are trading relatively mixed with the belly outperforming

slightly. The very long-end is under a little pressure with the 30-year

benchmark yield trading at 1.443% up from a low of 1.431%.

- Italian BTPs have sold off sharply with the short-end underperforming. The

3-year benchmark yield is up 5.0bps on the day with yields broadly 2-5bps higher

across the curve.

- Spanish government bonds opened stronger but similarly followed regional

yields higher. Current yield levels: 2-year -0.314%, 5-year 0.122%, 10-year

1.165%, 30-year 2.318%.

- Euribor futures trade broadly flat/0.5 ticks higher.