Core and periphery EGB yields have......>

EGB SUMMARY: Core and periphery EGB yields have diverged through the morning

session.

- German bund yields have drifted lower and the curve has flattened. The

benchmark 2-year bund yield trades at -0.612%, down from an intraday high of

-0.603%, while the 10-year has traded down to 0.399% from 0.4197%. 

- Similarly, French yields have edged lower across the curve. The 5-year OAT

yield trades at 0.059% from a high of 0.076%, whille the 30-year yield has

fallen to 1.582% from 1.604%.

- Italian BTPs have posted the largest moves among the EGB majors. The 2-year

BTP surge has pushed up to 0.682% from a session low of 0.591%, while the 2s10s

spread has narrowed to 199.2bps from a high of 202.3bps.

- Spanish bonds have also sold off since mid morning. The 2-year has traded up

to -0.274% from a low of -0.299%, while the 5-year is up to 0.362% from 0.353%

and the 10-year yield has increased to 1.386% from 1.373%.

- EURIBOR futures are largely unchanged on the day, with just whites down 0.5

ticks.