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Periphery EGB spreads are trading a.....>

EGB SUMMARY
EGB SUMMARY: Periphery EGB spreads are trading a little tighter Friday morning,
with Eurozone inflation data out of the way and U.S. payrolls up shortly.
- Main highlight of the morning was eurozone Apr inflation hitting highest level
since Nov, rising to 1.7% y/y (vs 1.6% mkt expectation) from 1.4% in Mar. 
- Core up 0.4pp to 1.2% y/y - strongest since Oct (0.2pp expected, 0.8% prior).
- Still, outturns being discounted as set to recede in May when Easter effects
reverse. Barclays: "Investors should not read too much into" CPI acceleration.
- ECB's Weidmann expressed scepticism this morning on the effectiveness of
deposit rate tiering, joining a growing chorus of critics at the bank.
- Tonight sees DBRS rate Greece (current rating B (high); positive trend);
additionally, Moody`s reviews France while Fitch reviews Turkey.
- Italy, Spain, Portugal, Greece 10-Yr spreads/Bunds are 0.7-0.9bps tighter.
- Euribor futures strip is steady, +/-0.5 ticks. Latest EGB futures prices:
* Jun Bund futures (RX) down 21 ticks at 165.03 (L: 164.84 / H: 165.2)
* Jun BTP futures (IK) down 10 ticks at 130.62 (L: 130.41 / H: 130.76)
* Jun OAT futures (OA) down 16 ticks at 161.82 (L: 161.67 / H: 161.93)

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