- Following the early morning rally,....>

EGB SUMMARY: - Following the early morning rally, German bund yields have pushed

higher and the curve has flattened. The 2-year bund yield trades at -0.615% up

from a low of -0.632%, while the 10-year trades at 0.425% from a low of 0.426%.

The 2s10s spread has narrowed to 103.4bps from a high of 104.99bps.

- French OATs have similarly sold off with the short end underperforming. The

benchmark 2-year OAT trades at -0.424% up from a low of -0.4398%.

- Volatility has returned to the Italian BTP market with wide trading ranges for

the day. The 2-year has traded within a 0.829/0.978% range and the 10-year

benchmark has held within a 3.289/3.389% range. 

- The short end of the Spanish curve has traded sideways since mid morning,

while the longer end has rallied. The 2s30s spread has traded down to 283.5bps

from 285.2bps.

- The Euribor futures strip has flattened with whites off 0.5 ticks and

greens/blues up 0.5-1.5 ticks.