German FI a touch lower in the main; Schatz....>

EGBS: German FI a touch lower in the main; Schatz unch., Bobls -7.0, Bunds -29.

- A Gilt sell off (linked to the possibility of the BoE adj. its countercyclical

capital buffer in the case of a no deal Brexit, per the BoE's latest FSR)

weighed on core paper Thurs. This was before strong U.S. CPI, a lack of overtly

dovish Fedspeak & a sloppy 30-Year U.S. bond auction weighed in the afternoon.

Elsewhere, a speech from ECB's Coeure suggested that policymakers shouldn't be

overly focused on mkt signals re: inflation, noting that h'holds are less

sceptical about the future. Coeure linked the bulk of the fall in EUR

5-Year/5-Year inflation linked swaps to a fall in risk premium.

- Periphery narrowed vs. core. The 10-Year BTP/Bund spread closed < 200bp after

participants pointed to a constructive outlook owing to "solid" participation in

the latest round of BTP supply, albeit not as impressive as the 50-Year BTP

syndication earlier this week.

- Focus Friday turns to comments from ECB's Visco & de Cos, while the Bank of

Italy will issue its quarterly economic bulletin. Eurozone industrial production

headlines the regional economic docket.