Bond markets are trading mixed this....>

BOND SUMMARY: Bond markets are trading mixed this morning.

- US treasury yields have edged lower, with the benchmark 2-year yield falling

to 2.585% from a high of 2.597%. Although the 10-year yield has similarly traded

down, outperformance at the short end has resulted in the curve steepening. The

2s10s spread has widened to 30.2bps from a low of 29.2bps.

- German bunds have sold off across the curve. At the long end, the benchmark

30-year bund trades at a yield of 1.052% up from 1.041% at the open, while the

5-year yield has traded up to -0.271% from a low of -0.283%. 

- BTPs have rallied this morning. The benchmark 2-year has pushed down to 0.591%

from a high of 0.627%, while the 10-year is down to 2.57% from 2.610%. The

Spanish 10-year yield has traded down to 1.371% from a high of 1.391%, while the

curve has flattened with the 2s10s spread narrowing to 165.3bps from 167.3bps.

- Gilts are trading stronger this morning with the 2-year yield edging down to

0.732% from a high of 0.749%, the 5-year down to 0.991% from 1.009% and the

10-year down to 1.235% from 1.251%.

- EURIBOR futures Greens/Blues down 1-1.5 ticks, Euro$ futures up 1.0-1.5 ticks.