- German bunds have rallied over the....>

EGB SUMMARY: - German bunds have rallied over the past two hours, having traded

sideways through to midday. The benchmark 2-year bund trades at -0.537% down

from -0.525%, while the 10-year yield has pushed down to 0.476% down from

0.504%.

-  The French OAT curve has steepened with the 2s10s spread widening to 115.5bps

up from 113.2bps and the 2s30s has traded up to 204.1bps up from 201.7bps.

- Italian BTPs have sold off across the curve. The 2-year benchmark trades at

0.812% up from a session low of 0.685%, while the 10-year yield has edged up to

2.881% from 2.797%. The curve has flattened with the 2s10s spread narrowing to

205.7bps from 211.8bps.

- The early morning rally in the longer end of the Spanish curve reversed by

midday, with the curve concomitantly steepening. 

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