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

EGB SUMMARY: - Following the early morning sell off, German bunds have rallied

through the remainder of the day, with stronger gains at the longer end causing

the curve to flatten. The 10-year benchmark bund yield has pushed down to 0.368%

from a high of 0.403% while the 2s10s spread has flattened to 99.2bps from

101.6bps.

- French OAT yields have similarly headed lower during the session with the

2-year yield down to -0.432% from -0.417% and the 10-year down to 0.742% from

0.767%.

- Following the release of weaker than expected GDP data for the third quarter,

Italian BTPs have sold off sharply, with selling particularly concentrated at

the shorter end. The 2-year BTP yield has surged to 1.112% from a low of 0.899%.

- The shorter end of the Spanish curve has traded within a tight range while

yields at the longer end spiked from mid morning. The 10-year benchmark

currently trades at 1.568% from a low of 1.540%.

- The Euribor futures strips has flattened with greens/blues up 1.0-1.5 ticks.