EGB have broadly rallied. - German......>

EGB SUMMARY: EGB have broadly rallied.

- German bund yields have tracked lower through the day. The benchmark 2-year

bund has traded down to -0.596% from an intraday high of -0.5895, the 5-year

down to -0.173% from -0.149% and the 10-year down to 0.389% from 0.423%. The

curve has flattened with the 2s10s spread narrowing to 97.6bps from a high of

100.4bp and the 2s30s has fallen to 162.2bps from 164.4bps.

- French OATs have rallied across the curve, with outperformance at the long end

causing the curve to flatten. The 2s30s spread has fallen to 197.7bps from a

high of 200.1bps with the benchmark 30-year OAT trading at 1.579% from 1.610%.

- Italian BTPs have had a choppy session, with lingering uncertainty over the

government's budget plans. The 2-year BTP yield trades at 0.944%, in the middle

of the day's range, while the 10-year trades at 2.889% down from a high of

2.924%.

- The EURIBOR futures strip has flattened with reds up 0.5-1.0 ticks and

greens/blues up 2.0-2.5 ticks.