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

EGB SUMMARY: - German bund yields have drifted up since the open. The benchmark

2-year bund trades at -0.572% from a low of -0.579%, while the 10-year is up to

0.370% from 0.350%. The curve has steepened with the 2s10s spread trading up to

93.4bps from 90.7bps while the 2s30s has widened to 160.5bps from 158.4bps.

- French OATs have similarly sold off slightly this morning. The 2-year yield

has edged up to -0.415% from a session low of -0.427% while the 10-year yield is

up to 0.705% from 0.691%.

- Italian BTPs continue to rally on the back of improving sentiment towards the

government's budget plans. The short end has outperformed, causing the curve to

steepen. The 2-year BTP trades at 0.846% down from 0.971%, while the 10-year is

down to 2.986% from 3.053%.

-  The short end of the Spanish curve rallied at from the open and then lost

momentum, while yields at the long end have pushed lower throughout the morning

session.

- Euribor futures whites/reds are flat to 0.5 ticks higher while greens/blues

are flat to 0.5 ticks lower.