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

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

2-year benchmark yield trades at -0.603% down from a high of -0.593% and the

10-year trades at 0.318% down from 0.341%. The curve is slightly flatter on the

day with the 2s10s spread narrowing to 91.5bps down from 93.1bps.

- The preliminary November CPI print for Germany came in a touch weaker than

expected at 2.2% Y/Y vs 2.3% survey.

- The French OAT curve has similarly flattened on the back of the long-end

outperforming. The 2s10s and 2s30s have traded down 1-2bps from the highs.

- The Italian news flow has been light today with contained trading in the BTP

market. The 2-year benchmark yield hit a high of 0.926% and has since pushed

down to 0.857%.

- The short-end of the Spanish curve has traded sideways while the longer-end

has rallied. The 10-year trades at 1.498% down from 1.537%.

- Euribor futures are broadly 0.5-3.5 ticks higher.