- German bunds are trading close to.....>

EGB SUMMARY: - German bunds are trading close to the middle of the day's range.

The benchmark 2-year bund yield trades at -0.628% and has held within a

-0.633/-0.619% range, while the 10-year yield trades at 0.410% and has held

within a 0.393/0.425% range.

- The French OAT curve steepened sharply at the open but has flattened since

mid-morning. The 2s10s spread has narrowed to 121.6bps from a high of 123.8bps.

- Italian BTPs have oscillated in a large range this morning. The 2-year BTP

yield initially surged to 1.695% from a low of 1.501%, before pulling back to

1.573%. Rome is facing fresh scrutiny from other member states over its budget

proposals which will keep up the pressure on BTPs.

- Spanish bonds similarly sold off since the early morning before partially

reversing losses. The 10-year yield soared to 1.817% from a low of 1.726% before

falling back to 1.784%.

- The Euribor futures strip has flattened with whites down 0.5-1.0 ticks and

greens/blues up 0.5-1.5 ticks.