Bunds have bounced off intra-day lows as.......>

EGBS: Bunds have bounced off intra-day lows as markets continue to be influenced

by moves in US Treasuries and and the level of the 10-yr Note. German 10-yr

yield is 1bp higher at 0.641%, curve is slightly flatter as 2-yr remains

anchored.

- EMU periphery in general area firing slightly better than German bunds with

Bund/GGB being the stand-out mover on the day with 10-yr spread 7.3bp tighter.

- French consumer confidence edged higher in April but that is pretty much it

for Eurozone data today with attention likely turning to ECB GC meeting

tomorrow.

- Both Barclays and BNP Paribas have put out notes saying how they see a

extended sell-off in Bunds in the near term being unlikely, especially ahead of

ECB meeting tomorrow, but further out should see pressure build. Both also see

attractiveness of a 10s/30s flattener in OATs.