EGBs look set to close Friday mixed.....>

EGB SUMMARY: EGBs look set to close Friday mixed with the yield curve steepening

as 30-yr sector of core/semi-core bonds have underperformed, weighed by

steepening flow. While front end seen underpinned by dovish comments from BoE

Carney. 

- German 10-yr Bund yield is sitting at session highs at 0.609% up 0.9bp on the

day with 2s/30s 2.3bp wider at 182.5bps.

- It has been a less dramatic trading session in European government bond

markets compared to Gilts with German Bund future fluctuating around unchanged

levels uncertain on which direction to take. 

- EMU periphery have lagged Friday but have bounced off earlier intra-day lows

with Bund/BTP spread now 1bp wider at 119.1bps vs high of 120.8bps as efforts to

try and form a government look to be failing as Five Star movement once again

refused to team up with Forza Italia.

- Newswires picked up ECB Weidmann saying that Q1 was not turning point in EMu

economy, but warned on protectionism. 

- Next week focus turns to ECB governing council meeting & EMU flash HCIP