- German bunds opened stronger this.....>

EGB SUMMARY: - German bunds opened stronger this morning but have since given

back most of the early gains. Yields have pushed steadily higher throughout the

day and the curve has steepened on the back of the long end underperforming. The

2-year benchmark yield trades at -0.576% from a low of -0.587% while the 10-year

has pushed up to 0.406% from 0.382%. The 2s10s spread has widened to 97.3bps

from a low of 95.4bps.

- The long end of the curve has similarly led the sell off in French OATS. The

very long end, in particular, has suffered with the 2s30s spread trading up to

209.6bps from a low of 205.8bps.

- It is back to business as usual for Italian BTPs with a return to the wide

oscillations in intraday trading. The 2-year yield surged to a high of 1.1499%

from 1.0135% at yesterday's close and has since fallen back to 1.0639%.

- The shorter end of the Spanish curve sold off from the open then traded

sideway from mid morning. The 10-year has traded erratically, but with yields

pushing higher from 1100BST. The 2s30s spread is 3bps wider on the day.

- Euribor futures are off 0.5 ticks in whites, flat/0.5 ticks up in reds-blues.