- European bond markets saw a strong...>

BOND SUMMARY: - European bond markets saw a strong start to the European open

(with Treasuries also benefitting) before quickly reversing their gains on

seemingly little news.

- Gilts are the underperformers at the short-end in core markets with yields

across most of the curve around 1bp higher since yesterday's close.

- USTs have seen bigger moves in the 10y sector with yields 1.8bp higher than

yesterday's close, although 2y yields are only 0.8bp higher as the curve has

bear steepened.

- The German curve has flattened a little this morning with Schatz trading 0.3bp

weaker but Bunds trading 0.1bp stronger on the day.

- Elsewhere in EGBs, Spanish 10y spreads have continued to narrow following

yesterday's very successful syndication while Portuguese spreads have widened.

- Equity markets are mixed this morning across Europe, with Eurostoxx, the CAC

and IBEX all higher on the day but DAX. FTSE100 and FTSE MIB all lower on the

day.