Weak Eurozone data this morning has.....>

EGB SUMMARY: Weak Eurozone data this morning has been compounded by poor U.S.

data in the afternoon, pushing core EGBs higher Thursday.

- Jun19 Bund and OAT futures are on track for contract-high closes,

consolidating morning gains on poor PMIs/German IFO, then boosted after U.S.

flash PMI at 1445UK cast further doubt over global growth.

- German curve bull flattening: 2-Yr yield down 0.6bps at -0.634%, 5-Yr down

1.9bps at -0.523%, 10-Yr down 3bps at -0.116%, 30-Yr down 2.7bps at 0.543%.

- Periphery EGB spreads wider, with Greece and Italy underperforming (10-Yrs

4-5bps wider of Bunds). Spain and Portugal 1-2bps wider.

- Euribor strip flat in short-dated contracts, Blues/Golds up 2.5-3.0 ticks.

- ECB minutes didn`t really have much traction, with no surprises. Mkt focus was

on deferred decisions on TLTRO III terms and mitigation of negative rate impact.

- Latest futures prices:

* Jun Bund futures (RX) up 49 ticks at 167.21 (L: 166.86 / H: 167.3)

* Jun BTP futures (IK) down 5 ticks at 130.09 (L: 129.82 / H: 130.22)

* Jun OAT futures (OA) up 38 ticks at 163.3 (L: 163.02 / H: 163.36)