German FI well bid on the broader risk-off.....>

EGBS: German FI well bid on the broader risk-off flows evident overnight, albeit

off best levels; Schatz +3.0, Bobls +12, Bunds +48.

- To recap the latest bout of upside impetus was provided by the latest BBG

sources piece re: the trade war which noted that "the White House is holding off

on a decision about licenses for U.S. companies to restart business with Huawei

after Beijing said it was halting purchases of U.S. ag goods." This came in the

wake of Italian Deputy PM calling for a snap election (see previous bullet for

further details).

- 10-Year bund BTP spreads had widened on Thursday on political noise throughout

the last couple of sessions Thursday, and will likely see further pressure at

the re-open. This should present the focal point for the space during today's

session.

- Little to report in terms of notable changes in direction for EUR

5-Year/5-Year inflation linked forwards, with 10-Year EUR swaps finishing

yesterday ~7.0bp back from all-time lows logged on Wednesday.

- German trade & current account data headlines the regional docket today.