Despite the risk-off tone this..........>

EGB SUMMARY: Despite the risk-off tone this morning, support for core EGBs has

been relatively limited.

- German bund yields have edged lower across the curve. The benchmark 2-year

bund has traded down to -0.655% from a session high of -0.639%, while the

10-year is down to 0.313% from 0.326%. Similarly, the curve has steepened only

slightly, with the 2s30s spread ticking up to 162.2bps from a morning low of

159.1bps.

- There has been a more significantly steepening of the French OAT curve on the

back of the short end rallying and the longer end selling off. The 2s10s spread

has widened to 113.4bps from 110.5 bps while the 2s30s is up to 201.6bps from

198.6bps.

- Italian BTPs have traded mixed. The front/middle of the curve has oscillated

while the longer end has sold off. The benchmark 10-year BTP yield trades at

3.052% from a low of 2.989%.

- The EURIBOR futures strip has flattened with greens/blues up 0.5-1.5 ticks.