Periphery EGBs finished Friday close....>

EGB SUMMARY: Periphery EGBs finished Friday close to the week`s lows and Bunds

finished slightly off their highs, as markets contemplated a busy event schedule

next week that will include a potentially crucial ECB meeting.

- Sep8 Bund futures rose 80 ticks to 160.44, amid bull flattening on the curve.

- Greek debt recovered significantly in the afternoon, but is still weaker

following news this morning about a withheld ESM E1bln tranche that sent the 10Y

spread over Bunds up 26bps to 443bps, last back down to 424bps. 

- Italy was the second-worst EGB performer, with the 10-year yield up 2.7bps at

3.089%, and the spread vs Germany out 6.7bps at 264bps. Spain and Portugal were

out just 2.0bps and 3.6bps, respectively.

- Long-dated Euribor was bid Friday, after selling off sharply on Wed-Thu amid

speculation that the ECB would turn more hawkish on QE at the June 14 meeting.

Blue contracts are up 4.5-5.0 ticks.

- Apart from the ECB, markets will be closely tuned in the coming week to the G7

meeting this weekend (esp on the US trade front), the UK parliamentary vote on

Brexit and the Trump-Kim summit on Tuesday, and the Fed meeting on Wednesday.