- German bunds have traded sideways.....>

EGB SUMMARY: - German bunds have traded sideways for most of the day, while the

longer end has rallied over the past hour. The 2-year benchmark bund has traded

within a -0.507%/-0.4999% range while the 10-year yield has pushed down to

0.527% from an intraday high of 0.540%. The curve has flattened slightly with

the 2s10s spread narrowing to 102.5bps from 103.5bps. 

- French yields have drifted lower. The 2-year trades at -0.336% down from

-0.325% and the 10-year trades at 0.842% down from 0.854%.

- The rally in Italian BTPs lost momentum by late morning, giving way to

sideways trading. The curve has steepened with the 2s10s spread widening to

209.7bps up from 202.4bps.

- There has been little overall movement in the Spanish curve with the 2s10s

spread trading within a 173.2/174.99bps range.

- Euribor futures are broadly flat to 0.5 ticks lower.