Core EGB yields have tracked higher.....>

EGB SUMMARY: Core EGB yields have tracked higher since the morning. 

- The German curve has steepened this afternoon, with the 2s10s spread widening

to 96.0bps from a low of 95.0bps. The benchmark 10-year bund yield has pushed up

to 0.308% from an intraday low of 0.285%.

- Although French OAT yields have similarly edged higher, the curve has

flattened. The 2s10s spread has narrowed to 110bps from a high of 112bps. France

will tap three OATs tomorrow for a combined E7.0-8.0bln.

- The benchmark 2-year Italian BTP yield trades at 0.667% from an intraday high

of 0.721%, while the 5-year has traded down to 1.702% from 1.758%, and the

10-year is down to 2.644% from 2.668%.

- The EURIBOR futures strip has flattened on the day with Greens and Blues up

0.5-1.5 ticks. 

- German factory orders and Spanish industrial production will be key to watch

tomorrow.