- German bunds have sold off since......>

EGB SUMMARY: - German bunds have sold off since mid-morning, with the longer end

of the curve underperforming. The 2-year bund trades at -0.611% up from a low of

-0.641% while the 10-year yield has edged up to 0.429% from a low of 0.406%. The

2s10s spread has widened to 103.3bps from 102.3bps. 

- French OAT yields have similarly traced a path higher, although the curve has

flattened slightly.

- Italian BTPs have sold off since the open, with the largest moves seen at the

longer end. The 10-year yield pushed up to a high of 3.416% before pulling back

to 3.381%. Of all the euro area PMIs released today, the Italian data was on the

weaker side. The Services PMI for October came in at 49.2 vs 52.0 survey.

- The shorter end of the Spanish curve has traded sideways since mid morning

while the longer end has sold off. The curve has steepened with the 2s10s spread

up 4bps on the day.

- The Euribor futures strip is broadly flat to 0.5 ticks lower. Option flow has

been relatively light today.