Core EGB yields have had a choppy.......>

EGB SUMMARY: Core EGB yields have had a choppy session while long end periphery

yields are pushing decisively higher.

- The benchmark 2-year German bund yield trades at -0.679%, a touch below the

opening level of -0.682%. The 10-year yield has fallen to 0.324% since the

morning peak of 0.335% and is now back in line with the open.

- The French OAT curve has steepened slightly. The 2-year OAT yield has traded

down to -0.464% from an intraday high of -0.451%, while the 10-year is down to

0.721% from 0.744%.

- Market moves are particularly pronounced in Italy and Spain. The 10-year

Italian BTP yield trades at 2.914% from 2.819% at the open, while the 2s10s

spread has widened to 185bps from a daily low of 179bps. Similarly, the

benchmark Spanish 10-year yield has pushed up to 1.387% from a low of 1.332%,

with the 2s10s spread rising to 157bps from 153bps.

-  The EURIBOR futures strip has steepened with Whites up 0.5 ticks and Blues

down 0.5-1.0.