German government bonds are lower.......>

EGB SUMMARY: German government bonds are lower into the close Friday following

weaker than expected US Mar Payrolls data and escalation in tensions with China.

- Bunds opened firmer as stocks were pressured in Asia session after Trump said

will consider another $100bln of tariffs on goods from China. 

- Bonds rallied after China's Ministry of Commerce spokesman Gao Feng in an

unscheduled press conference China won't hesitate the slightest and will

immediately strike back in 'great force' if Trump slaps tariffs on goods

imported from China. 

- The comments shortly after weaker than expected US Mar Payrolls data at +103k

vs +195k MNI median and +210k whisper number. MNI analysis had shown a tendency

of analysts to overestimate payrolls in recent March reports, so the softer than

expected reading followed this trend. 

- Risk-off prevailed into the close with EMU peripheral spreads widening, with

Portugal & Spain underperforming and trading 4bps & 3bps wider, respectively. 

- Attention turns to Fed Chair Powell speech on economic outlook at 1730GMT.

- German 10-year Bund yield is down 2.6bps at 0.497%.