Core EGB yields have drifted lower......>

EGB SUMMARY: Core EGB yields have drifted lower through the session while

periphery yields are trading back near yesterday's close.

- The German bund curve has flattened on the back of the longer-end

outperforming. The 2s30s spread has narrowed to 126.2bps down from 130.4bps.

Current yield levels: 2-year -0.562%, 10-year 0.097%, 30-year 0.7096%.

- French OATs have traced out a similar path. The short end of the curve trades

close to unch. on the day while longer end yields are 1-2.5bps lower. The

10-year benchmark has outperformed the curve, with 2s10s trading down to 96.9bps

from 99.4bps.

- Italian BTPs have traded in a relatively wide 4-8bps range during the day with

yields now 1-2bp higher than yesterday's close. Overall there has been little

change in the curve.

- Spanish government bonds have oscillated in a very tight 1-2bp range. Current

yield levels: 2-year -0.265%, 10-year 1.232%, 30-year 2.453%.

- Euribor futures are broadly flat/0.5 ticks higher in whites/reds and 0.5-3.0

ticks higher in greens/blues.