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

EGB SUMMARY: - German bunds have rallied across the curve since the open. The

benchmark 2-year bund yield has traded down to -0.645% from -0.654%, while the

10-year is down to 0.298% from 0.309%. The curve has flattened slightly with the

2s30s spread narrowing to 160.7bps from a high of 161.6bps.

- French OATS have similarly rallied this morning, although there has been

little overall movement in the curve. The benchmark 2-year trades at -0.457%

from a high of -0.446%, the 5-year at -0.005% from 0.012% and the 10-year at

0.656% from 0.671%.

- Italian yields have drifted higher and the steepening of the curve since the

open ahs been partially reversed over the past two hours. The 2-year yield has

edged up to 1.287% from a low of 1.226%, while the 10-year trades at 3.140 up

from 3.084%.

- While the short end of the Spanish curve has rallied, the middle and longer

end have lacked clear direction.

- The Euribor futures strip has flattened with greens/blues up 1.0 ticks.