EGBs are relatively quiet. There are....>

EGB SUMMARY: EGBs are relatively quiet. There are no significant data releases

today beyond German factory orders, which came out weaker than expected (-4.0%

M/M vs -0.5% M/M survey).

- The German bund curve has flattened since early morning. The 2s10s spread has

narrowed to 98.85bps from a high of 100.4bps while the 2s30s spread has fallen

to 163.4bps from 164.8bps. Most of the movement has been at the long end, with

the 30-year bund trading down to 1.053% from a session high of 1.068%.

- The French curve has similarly flattened. The 2s30s trades at 198.2bps down

from 200.1bps, with the 30-year yield edging down to 1.591% from a high of

1.610%.

- Italian BTPs have rallied across the curve. The benchmark 2-year BTP yield has

pushed down to 0.921% from a high of 0.973%, the 5-year down to 2.017% from

2.074% and the 10-year down to 2.876% from 2.921%.

- The EURIBOR futures strip has flattened slightly with whites/reds up 0.5 ticks

and greens/blues up 1.0 ticks.