Periphery EGBs continued to.............>

EGB SUMMARY: Periphery EGBs continued to strengthen as core instruments opened a

little higher Thursday.

- German Bunds are trading slightly stronger across the curve to open the day,

with 2-yr yields 0.5bps lower at -0.592%, and 10-Yr up 0.2bps at 0.346%.

- Meanwhile, periphery EGB yields and spreads are much tighter. The outperformer

once again is Italy, with the BTP curve bull flattening on a rally in

2s-to-5-yrs, with 10-Yrs lagging slightly.

- 2-Yr Italian spreads to Bunds are down 2.1bps at 167.9bps, with 10-Yrs in

3.1bps at 269.0bps.

- Spain also performing strongly, with the curve also bull flattening but not

quite as dramatically as Italy's, with the 10-Yr Bono yield down 1.0bps at

1.3707%, and spread over Germany down 1.2bps at 102.6bps.

- Wednesday afternoon's Bloomberg report citing the Bundestag that German

issuance would be upped by E10bln in 2019 potentially still weighing.

- PMIs are today's data highlight: France surprised to the upside, and Germany

and EMU to follow.