Amid the equity sell off, short-term...>

BOND SUMMARY: Amid the equity sell off, short-term interest rate futures have

rallied.

- There is no clear direction in US TSYs. The 2-year has sold off slightly while

the 10-year has been trading in a fairly tight 3.142/3.176% range.

- The Dec18 JGB future has inched higher, trading at 150.18 from a low of

150.14.

- The shorter end of the German bund curve has sold off slightly since the open,

while the 10-year trades at 0.503% and has oscillated within a fairly tight

range. 

- French OATs initially sold off at the open, but have subsequently paired some

of the losses. The curve has steepened with the 2s10s spread widening to

123.2bps up from 120.2bps.

- There has been stronger direction in the Italian BTP market with yields

pushing higher across the curve. The 2-year BTP benchmark trades at 3.583% up

from a low of 3.499%.

- Euro% futures up 2.0-7.0 ticks. Euribor futures strip has similarly flattened.