- Following the early morning...........>

EGB SUMMARY: - Following the early morning sell-off - induced by Chancellor

Angela Merkel's decision to stand down as head of the CDU - German bunds have

been trading sideways since mid-morning. The 2-year benchmark bund trades at

-0.624%% from a low of -0.644% while the 10-year trades at 0.385% from 0.345%.

- French OAT yields have gradually inched lower following the morning sell off,

with the 10-year benchmark yield grinding down to 0.746% from a high of 0.765%.

- Following the strong open, Italian BTP yields have pushed further lower during

the day. The 2-year BTP yield is now down to 0.886% from 1.092% at Friday's

close.

- The Spanish curve has traded within a fairly tight range with the 2s10s spread

holding within a 171.7/175.0bps range during the day.

- The Euribor futures strip has steepened with greens/blues down 2.5-3.0 ticks.