- Bunds have rallied across the curve...>

EGB SUMMARY: - Bunds have rallied across the curve since midday. The benchmark

2-year bund trades at -0.607% from a session high of -0.578%, while the 10-year

has pushed down to 0.354% from 0.408%. The curve has flattened on the back of

the long end outperforming with the 2s10s spread narrowing to 95.2bps from

97.9bps and the 2s30s trading down to 162.6bps from 164.9bps.

- French yields have similarly pushed lower. Key levels: 2-year -0.446% (down

from -0.4098%), 5-year 0.036% (0.075%), 10-year 0.696% (0.737%), 30-year 1.597%

(1.628%).

- There has been a sharp sell-off in BTPs since midday. The 2-year yield has

surged to 1.324% from 1.150% and the 10-year is up to 3.213% from 3.095%. The

spread of Italian over German 2-year yields has widened to 193.1bps from

173.2bps.

- The Spanish curve is relatively flat on the day.

- The Euribor futures strip has flattened with greens/blues up 1.0-3.0 ticks.