- German bunds have been range bound....>

EGB SUMMARY: - German bunds have been range bound this morning with no clear

direction. The 2-year bund trades at -0.602% from -0.610% at the open, while the

10-year trades at 0.334% and unchanged on the day. The curve is similarly flat

from the open. The Markit Manufacturing PMI for Germany came in a touch weaker

than expected for August at 55.9 vs 56.1 survey.

- French OATs have sold off slightly since mid-morning with the curve

flattening. Key levels: 2-year -0.439%, 5-year 0.043%, 10-year 0.690%, 30-year

1.589%.

- There has been little direction at the short end of the Italian BTP curve,

while the longer end has rallied. The 10-year BTP yield has edged down to 3.169%

from a high of 3.232% and the 30-year is down to 3.761% from 3.807%.

- The Spanish 2s10s spread has narrowed on the back of the longer end

outperforming. The 10-year yield has pushed down to 1.452% from 1.470% and the

2s10s has traded down to 1772.1bps from 173.5bps.

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