German FI trades mixed; Schatz +0.5, Bobls.....>

EGBS: German FI trades mixed; Schatz +0.5, Bobls -3.0, Bunds -17.

- Friday saw German FI come under some pressure in the wake of stronger than

exp. EZ ind. production, although Bunds seem reluctant to hold below their

Thursday low, with yields closing back below -0.20% after a look above in the

wake of the data.

- Peripherals widened on Friday, although BTPs managed to outperform Greece,

Portugal & Spain, as the 10-Year BTP/Bund spread closed sub-200bp, again.

- Italian politics continue to dominate news flow, with newspaper reports

pointing to the possibility of a national election in September, based on

pressure from within Salvini's Lega Party, while other reports have suggested

that M5S want an election in the Spring. Elsewhere in the periphery, the latest

opinion polls indicated increased support for Portugal's ruling socialist party,

while the head of the Greek central bank suggested that the country's

participation in the ECB's QE programme may be "feasible soon," in an interview

with Kathimerini, putting more focus on the country's credit rating reviews.

- The local docket is light today, with no tier 1 releases evident.