EGB yields have broadly headed lower....>

EGB SUMMARY: EGB yields have broadly headed lower throughout the day. 

- The burst of volatility in core yields ahead of the Eurozone CPI release

earlier in the day has subsided. The benchmark 2-year German bund, in

particular, appears to be closing the session on a quieter note. The yield is

currently trading at -0.671%, near the lows of the day and in line with the

open. The 10-year meanwhile is similarly probing the lows of the day and at

0.302% has dipped below the open.

- French OATs have followed a similarly trajectory. The 2-year yield has traded

down to -0.475% from an intraday high of -0.424%, while the 10-year is down to

0.661% from 0.718%.

- The rally in Italian BTPs has not been as decisive. The 2-year BTP yield

trades at 0.710%, having pulled back from a low of 0.681%. Similarly the 10-year

has traded up to 2.682% from a low of 2.662%. 

- The Spanish curve has flattened with the 2s10s spread narrowing to 154.9bps

from a high of 158.0bps.

- The EURIBOR futures strip has flattened with Greens/Blues down 1.0-1.50 ticks.