- German bunds have opened stronger.....>

EGB SUMMARY: - German bunds have opened stronger this morning. The benchmark

20-year bund trades at a yield of -0.512% having hit a morning low of -0.522%.

The 10-year trades at 0.501% up from 0.4799%. The curve is a touch steeper.

- French OATs similarly rallied at the open and then subsequently reversed some

of the gains. The benchmark 10-year OAT trades at 0.827% up from a morning low

of 0.812%.

- Following the Italian government's proposed 2.4% of GDP budget deficit target

for next year BTPs have sold off sharply. The 2-year BTP yield has pushed up to

1.020% from 0.810% and the 10-year is up to 3.105% up from 2.9495%. 

- Spanish yields have drifted higher with underperformance at the short end

causing the curve to steepen.

- The Euribor futures strip has flattened with greens/blues up 1.5-2.5 ticks.