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

EGB SUMMARY: - German bunds have sold off through the morning session, but the

curve is broadly unchanged. The benchmark 2-year bund yield has pushed up to

-0.579% from a low of -0.596% while the 10-year is up to 0.371% from 0.343%. Key

spread levels: 2s10s 94.1bps, 2s30s 161.5bps

- The French OAT curve has steepened with the 2s10s spread widening to 112.0bps

from 110.1bps and the 2s30s edging up to 201.6bps from 200.1bps.

- Italian BTPs have rallied, buoyed by indications that the government's budget

plans may be more sustainable than initially thought. The 2-year BTP trades at

1.002bps, down from 1.159%, while the spread over the comparable German bund has

narrowed to 158.5bps from 175.4bps.

- The front end of the Spanish curve continues to trade in a tight range while

the longer end has sold off 2-4bps.  

- The Euribor futures strip has steepened with whites up 0.5 ticks and blues

down 0.5-1.0 ticks.