Bunds have underperformed both USTs.....>

EGB SUMMARY: Bunds have underperformed both USTs and gilts and Bund futures are

little changed on the day. There had been talk in the market of large volumes

going through in the March Bund futures today but there does appear to have been

an issue with the Eurex feed.

- BTPs have again been the big story of the day with spreads to Bunds widening

once again and there still isn't a confirmed story, with some early closing out

of positions ahead of year-end expected. Spreads have widened to a lesser extent

across the periphery and semi-core.

- Bund futures are down -0.05 today at 170.79 with 10y Bund yields up 0.3bp at

-0.334% and Schatz yields down -0.1bp at -0.633%.

- BTP futures are down -0.52 today at 141.26 with 10y yields up 4.4bp at 1.251%

and 2y yields up 2.0bp at 0.054%.

- OAT futures are down -0.12 today at 167.25 with 10y yields up 1.1bp at -0.21%

and 2y yields down -0.5bp at -0.608%.