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

EGB SUMMARY: - German bund yields have drifted lower since midday, with the

curve flattening since the start of the session. The 2-year benchmark yield

trades at -0.601% down from a daily high of -0.591% and the 10-year at 0.346%

down from 0.375%. The 2s10s spread has narrowed to 93.9bps from 95.99bps. The

very long-end has outperformed the curve, with the 30-year yield edging down to

1.008% from a high of 1.045%.

- The short end of the French OATS have traded sideways since mid-morning, while

the longer end has rallied. The 10-year yield has edged down 0.753% from a high

of 0.779%.

- The morning volatility in Italian BTPs subsided with yields trading sideways.

The curve is steeper on the day with the 2s30s trading up 9bps from the low.

- Spanish government bonds have traced out a similar path to French OATS. The

shorter-end has lacked direction while the longer end has rallied since midday. 

- The Euribor futures strip is broadly 0.5-2.0 ticks higher.