A choppy afternoon session for EGBs ....>

EGB SUMMARY: A choppy afternoon session for EGBs 

-Bunds collapsed in early afternoon trading, with some desks suggesting that

some of the downside momentum pick up, has been on the notion that 2058 is the

max maturity of these recovery loans, potentially a large duration for semi core

sector. 

-EGB's have since reversed some of their earlier losses as EUR turned offered,

following Germany Merkel, not expecting an agreement on the EU plan at the next

Summit (19th June). The hope is that something will be done by the end of the

summer. 

- Equities saw similar reversals and off their highs 

-Peripherals continued to extend gains vs the German 10yr, following the EU

proposed plan, with semi core benefiting the most. -Greece is now 10bps tighter,

closely followed by BTP at 9.5bps, Portugal 6.7bps and Spain 6.2bps

- Bund futures are down -0.30 today at 171.86 with BTP futures up 0.79 at 142.24

and OAT futures up 0.14 at 167.32.