EGBs recovered after a morning..........>

EGB SUMMARY: EGBs recovered after a morning sell-off, with German 2-yr yields at

-0.551%, 0.1bps above the open, and 0.6bps down from the high. Curve is slightly

steeper, with 10-yrs up 1.1bps.

- Euribor futures curve is slightly steeper, with whites steady and greens and

blues under pressure from by a large move lower in eurodollar futures.

- Periphery spreads are flat on the day, with 10-yr BTP/Bund tightening by 3bps

early in the session before a full reversal of that move.

- In a thin day for eurozone data, with French consumer confidence ticking

higher in April, market attention is on the ECB GC meeting Thursday, and signs

of further weakness in USTs.

- EGB curve flatteners appear to be in vogue, with Barclays and BNP Paribas

seeing a bund sell-off unlikely in the near-term, and 10s/30s OAT flatteners

being attractive. Likewise, Nomura likes Gilt 10s20s flatteners.