There is a slight reversal to...........>

EGB SUMMARY: There is a slight reversal to Wednesday moves with core and

semi-core European government bonds trading modestly lower, but with the

periphery fairing better and inching higher, as markets trade with a risk-on

sentiment. German 10-yr yield is 1.5bp higher at 0.577%.

- China Q4 GDP came in at 6.8% y/y, above MNI median forecast of 6.7% y/y which

as also added to the risk-on feel. Apple also announced that it would repatriate

large amount of cash back to the US, pay a $38bln tax bill and invest tens of

billions on US jobs.

- Supply is the main event today with Spain and France selling up to E13.75bln

in nominal and linker bonds, while Austria is expected to open books for a new

10-yr benchmark bond, likely for E4bln.

- Comments from ECB members are also eyed, although the early speech by Weidmann

concentrated on German domestic issues, however Coeure comments will be closely

watched for any views on Euro appreciation or timing of rate hikes.

- Both Spain and Italy 10-yr spread to German Bunds are 0.6bp tighter, while

Bund/PGB spread is 2bp tighter.