- German bunds have lacked clear........>

EGB SUMMARY: - German bunds have lacked clear direction with yields trading the

middle of the day's ranges. The 2-year benchmark trades at -0.586% off a low of

-0.591% and the 10-year trades at 0.345% up from a low of 0.329%. The curve has

steepened since the morning session with the 2s10s spread trading up to 92.5bps

from 91.1bps.

- It is a similar story for French OATs, with just modest steepening of the

curve. The 2s10s spread has widened to 116.8bps from 115.8bps and the 2s30s has

edged up to 210.1bps from 208.4bps.

- The budget-related news headlines have failed to move the meter today. In the

latest twist, Armando Siri, economic adviser to Matteo Salvini, has indicated

that the government is considering a modest reduction to the 2019 budget

deficit. The trading range for BTPs has been narrower than in recent sessions

with the 2-year benchmark yield holding within a 0.785/0.872% range.

- Spanish government bonds have rallied throughout the day, with slight

outperformance at the long end.

- Euribor futures are broadly flat to 1.5 ticks higher.