Following US President Donald Trump's...>

EGB SUMMARY: Following US President Donald Trump's assertion that European

automobile manufacturers are a threat to national security, a spokesperson for

the European Commission has warned that the EU would retaliate if any new

tariffs were introduced.

- The German bund curve has steepened as a result of the very long-end

underperforming. The 2s30s spread has widened to 130.1bps from a low of 126.3bps

with the 30-year benchmark yield up 2bp on the day.

- The French OAT curve has similarly steepened as short-end yields have dropped

and the longer-end has succumbed to mild selling pressure. Current yields:

2-year -0.466%, 10-year 0.542%, 30-year 1.552%.

- Italian BTP yields are 3-8bp lower on the day with the 3-year benchmark

outperforming the curve.

- Spanish government bonds trade mixed, with little change in the curve. Current

yield levels: 2-year -0.262%, 10-year 1.222%, 30-year 2.461%.

- Euribor futures are flat/0.5 ticks higher in whites/reds/greens and down 0.5

ticks in blues.