A day of steepening in the German.......>

EGB SUMMARY: A day of steepening in the German curve, as the European Council

came and went with no resolution on the recovery fund (as expected).

- Schatz has outperformed on the German curve, which has bull steepened though

is off steepest levels. Bund contracts have traded in a 46 tick range with no

clear direction for most of the day, though heading higher over the afternoon.

- Italy announced the BTP Futura retail bond would have a 10-Yr maturity; goes

on sale in July. Meanwhile Portugal announced its updated 2020 funding plan,

including EUR12.6bln increase in bond issuance (net of buybacks).

- Periphery spreads a little tighter for the most part, Greece the exception.

** Latest levels:

* Sep Bund futures (RX) up 13 ticks at 175.72 (L: 175.3 / H: 175.75)

* Germany: The 2-Yr yield is down 2.4bps at -0.675%, 5-Yr is down 2bps at

-0.658%, 10-Yr is down 1.1bps at -0.418%, and 30-Yr is down 0.3bps at 0.017%.

* Sep BTP futures (IK) up 17 ticks at 142.63 (L: 142.25 / H: 142.63)

* Italy / German 10-Yr spread 0.9bps tighter at 177.7bps

* Sep OAT futures (OA) up 20 ticks at 167.06 (L: 166.56 / H: 167.08)