Core EGB curves have flattened this.....>

EGB SUMMARY: Core EGB curves have flattened this morning. Final estimates of the

composite and services PMIs for June were a touch higher in Germany and Italy,

but lower in France and Spain.

- The benchmark 2-year bund trades at -0.673%, up from a morning low of

-0.6796%. The 10-year yield has edged down to 0.291% from 0.297% at the open.

The 2s10s spread has narrowed to 95.4bps from an intraday high of 96.8bps.

- The French OAT curve has similarly flattened during the morning session, with

10-year yields trading to 0.634% from a high of 0.648%. France will tap three

OATs tomorrow for a combined E7.0-8.0bln. 

- There has been more movement in the Italian curve. The benchmark 2-year BTP

yield has traded down to 0.659% from a high of 0.721%, the 5-year is down to

1.696% from 1.758% and the 10-year is down to 2.653% from 2.688%. 

- The EURIBOR futures strip has flattened with Greens/Blues up 0.5-1.0 ticks.