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

EGB SUMMARY: - German bunds have rallied since late morning. The 2-year yield

has traded down to -0.618%, returning to the morning's lows, while the 10-year

trades at 0.379% down from 0.392% at the open. German breakeven inflation has

ticked lower, with the 5-year pushing down to 1.13% from a high of 1.14%.

- The French OAT curve has steepened, largely on the back of the short end

rallying. The benchmark 2-year OAT yield has pushed down to -0.435% from a high

of -0.415%, while the 2s30s spread has widened to 201.4bps from a low of

198.7bps. Industrial production and manufacturing data will be released

tomorrow.

- Italian BTPs have rallied since the early afternoon and the curve has

flattened slightly. The 2-year BTP, in particular, has rallied to 0.986% from a

high of 1.033%. The 2s30s spread has narrowed to 256.4bps from a high of

262.2bps.

-  The Spanish 2-year has traded in a tight range while yields have edged lower

at the longer end.

-  The Euribor futures strip has flattened with greens/blues up 1.5-2.0 ticks.