- CDS markets have been mixed, although.......>

BONDS: - CDS markets have been mixed, although relative to last week spreads are

still narrower.

- In developed markets, UK, Italy and France 5-year spreads have inched up,

while the Greek benchmark has taken another leg down. The implied default

probability for Greece is now 31.6% and down 0.3pp on the day/0.8pp on the week.

- The Japan CDS has ticked sharply higher, up 3.0bps from the previous close

(see chart below).

- Turkey and South Africa have been the big movers in EM. As we mentioned

previously, risk pricing is running counter to the move in oil and suggests in

both cases that local political/macro risk is the dominant theme in this case.