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

EGB SUMMARY: - German bunds have rallied since mid-morning and the curve has

flattened. The benchmark 2-year bund yield has edged down to -0.608% from

-0.596% and the 10-year is down to 0.333% from 0.357%. The 2s10s spread has

narrowed to 93.2bps from 95.1bps and the 2s30s is down to 160.6bps from

162.2bps.

- French OATs have similarly rallied across the curve. The 2-year trades at

-0.446% down from -0.433% and the 10-year at 0.686% from 0.705%.

- Italian BTPs have sold off since mid morning, but have recouped some of the

losses over the last hour. Key levels: 2-year 1.394%, 5-year 2.533%, 10-year

3.222%, 30-year 3.799%.

- Spanish bonds have traded in a tight range. 

- The EUR 5Y5Y forward inflation swap has ticked down to 1.71% from 1.725%.

- The Euribor futures strip is flat to 1.5 ticks higher.