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

EGB SUMMARY: - German bunds have rallied with outperformance at the longer end

causing the curve to flatten. The 10-year bund trades at a yield of 0.494% down

from 0.516% while the 2s10s spread has narrowed to 105.6bps from 107.5bps. The

German ZEW survey for October came in weaker than expected with the expectations

of economic growth subcomponent reading -24.7 vs -12.0 survey.

- French OAT yields have drifted lower across the curve throughout the day. The

2-year yield has pushed down to -0.395% from a high of -0.378% while the 10-year

is down to 0.844% from 0.876%. The curve has also flattened with the 2s30s

spread trading down to 208.6bps from 210.5bps.

- The morning rally in BTPs has extended into the afternoon session with

sizeable gains across the curve. The benchmark 2-year BTP yield has pushed down

1.270% from a high of 1.460%.

- The longer end of the Spanish curve has outperformed with the 30-year yield

pushing down to 2.769% from 2.804%.

- The Euribor futures strip is broadly 0.5-2.5 ticks lower.