- German bund yields have drifted.......>

EGB SUMMARY: - German bund yields have drifted lower across the curve this

morning. The benchmark 2-year bund trades at -0.572% down from -0.563%, while

the 10-year is down to 0.376% from 0.386%.

- The French OAT curve has steepened since the open with the 2s30s spread

widening to 202.1bps up from 199.6bps. Key levels: 2-year -0.416%, 5-year

0.059%, 10-year 0.711%, 30-year 1.616%

- The longer end of the Italian BTP curve has lacked direction. The 10-year

benchmark is holding within a 3.037-3.105% range while the 30-year is trading

within a 3.578-3617% range.

-  Spanish bonds have sold off with the longer end underperforming. The 2s30s

spread has pushed up to 285-7bps from an intraday low of 281.4bps.

- Greek bonds have made significant gains this morning. The benchmark 5-year

yield has pushed down to 3.358% from a high of 3.514%. We note that the spread

of the Greek over Italian 5-year CDS spreads trades at 169bps - a level not seen

since 2009. 

- The Euribor futures strip is flat to 0.5 ticks higher.