Italian BTPs are flat after early.......>

EGB SUMMARY: Italian BTPs are flat after early losses Friday and Bunds are

pushing higher in a positive end to the week for EGBs.

- The Dec 18 Bund future is up 55 ticks at 159.92, near day's highs having

traded in a range of 159.43-159.99 today. 

- Saw a spike alongside USTsys and Gilts around 1430GMT as US equities opened

and after the PBOC highlighted economic weakness in China.

- The 2-Yr German yield is down 2bps at -0.599%, 5-Yr is down 3.4bps at -0.173%,

10-Yr is down 4.2bps at 0.415%, and 30-Yr is down 3.8bps at 1.049%.

- Despite continued disagreement between Rome and Brussels, BTPs gained steam

over the course of the day, moving flat after early lossed. Dec 18 BTP future

down 1 ticks at 122.04, at high end of daily 121.41-122.1 trading range.

- Spreads are wider though given the Bund rally, 10-Yr BTPs out 5.4bps at

299.3bps. Greece wider, out 9.7bps at 397.6bps.

- French yields have fallen alongside Germany; 10-Yr OAT yield down 3.4bps at

0.788%.

- Next week sees a slew of EMU data, highlighted by Inflation and GDP.