- Bunds have been drifting sideways.....>

EGB SUMMARY: - Bunds have been drifting sideways. The benchmark 2-year bund

yield trades at -0.596% and has been committed to a tight range since late

morning. The 10-year yield has ticked lower to 0.401% from an afternoon high of

0.409%.

- French OATs have similarly been range bound since midday, with the 2-year

trading at -0.411% and the 10-year at 0.728%. The curve has steepened since the

morning with the 2s10s widening to 112.7bps from a low of 110.1bps and the 2s30s

spread widening to 199.33bps from a low of 195.98bps.

- Most of the EGB activity has been concentrated in the BTP market amid

speculation about the government's spending plans. The 2-year BTP yield has

surged from a low of 0.771% to 0.931% and breaking new highs. Similarly, the

10-year yield trades at 2.884% from a session low of 2.809%.

- Spanish yields have drifted higher during the afternoon. The 2-year trades at

-0.300% from a low of -0.326%, the 5-year is up to 0.374% from 0.358% and the

10-year is up to 1.399% from 1.378%.

- Euribor futures red to greens are up 0.5-1.0 ticks.