Rising risk appetite Friday............>

BOND SUMMARY: Rising risk appetite Friday following a week of volatility has

seen safe-haven bonds retreat, with US jobs data and Fed Chair Powell awaited.

- With stocks higher (EuroStoxx up 1.3%, S&P futures up 1.2%) and oil up (Brent

crude 2% higher), core EGBs and US Tsys are retreating.

- US 2-Yr yield is up 3.8bps at 2.4166%, 10-Yr is up 5.1bps at 2.604%. In

Germany, the the 2-Yr yield is up 1bps at -0.601%, 10-Yr is up 3bps at 0.183%.

- Core EGBs largely shrugging off weak eurozone CPI and services PMI data.

- So too are Gilts, which are selling off despite Dec PMI data that are

historically consistent with BoE rate cuts. Mar 19 Gilt futures are down 62

ticks at 123.40; cash 10-Yr yield up 5.8bps at 1.252%.

- Periphery EGBs rallying: the Mar 19 Italian BTP future is up 43 ticks at

126.91, having traded in a range of 126.52-127.22.

- JGBs a little weaker, Mar19 futures off 5 ticks at 152.79.

- With European data out of the way for the week, focus is firmly on US nonfarm

payrolls at 1330GMT and Fed Chair Powell's panel appearance at 1515GMT.