- German bunds have rallied.............>

EGB SUMMARY: - German bunds have rallied consistently through the morning

session, benefitting from the persistent risk off tone in equities. The 10-year

benchmark yield has dropped to 0.349% down from 0.385% and near the day's lows. 

- The German GfK consumer confidence indicator for November came in marginally

above expectations at 10.6 vs 10.5.

- The French OAT curve has flattened as a result of the longer end

outperforming. The 10-year OAT trades at a yield of 0.7399% from 0.7665% with

the 2s10s spread narrowing to 117.4bps from 118.7bps.

- Trading ranges in Italian BTPs have been relatively contained, with yields

drifting higher across the curve. The 2-year is up to 1.215% from a low of

1.157% and the 10-year is up to 3.526% from 3.482%.

- The shorter end of the Spanish curve has rallied while the longer end has

weakened. The 2s10s spread has traded up to 175.9bps from 173.1bps.

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

greens/blues up 2.5-4.0 ticks.

- ECB President Mario Draghi is due to speak in Brussels at 1600GMT.