Bunds have sold off somewhat and........>

EGB SUMMARY: Bunds have sold off somewhat and peripheral spreads have tightened

as risk has been on the front foot towards the end of the European session.

- There have been little idiosyncratic headlines moving EGBs in isolation today.

A Reuters story suggested that investors are being sounded out about a BTP

syndication of either 15y or 30y (or potentially 20y). BTPs have outperformed

today.

- The EFSF has confirmed that the reduction of step-up interest margin for

Greece has been approved. GGBs are amongst the outperformers today.

- Bund futures are down -0.64 today at 171.14 with 10y Bund yields up 2.4bp at

-0.186% and Schatz yields up 1.3bp at -0.602%.

- BTP futures are up 0.20 today at 142.85 with 10y yields down -3.4bp at 1.378%

and 2y yields down -1.3bp at -0.59%.

- OAT futures are down -0.44 today at 163.69 with 10y yields up 1.3bp at 0.061%

and 2y yields unch at -0.584%.