It has been a mixed day with EGBS.......>

EGB SUMMARY: It has been a mixed day with EGBS initially rallying higher in the

morning but then spending the afternoon session fading those gains, weighed by

moves in UK Gilts and US Treasuries. German 10-yr yield is 1.4bp lower at 0.721%

with curve modestly flatter.

- For EMU periphery they started off wider to Germany, unable to keep up with

the morning rally, but this has been reversed in the afternoon, possibly

supported by MNI ECB source story that said forward guidance was not forseen to

be revised at March GC meeting. Portugal was the main benefactor with 10-yr

Bund/PGB spread tightening from 134bps to 127.5bps.

- Earlier, the release of larger than expected fall in French flash

manufacturing PMI and German flash service PMI supported rally in core/semi-core

bonds and helped flatten the yield curve.

- There has been a significant pick-up in Eurex future calendar rolls today with

buying seen in the Bund roll but both selling and buying in the Bobl roll going

through screens. Latest data shows rolls being 5% to 9% complete

- Attention now turns to release of Jan FOMC meeting minutes.