MNI: - German bunds have been directionless this.....>

MNI: - German bunds have been directionless this morning and trading in tight

ranges. Key levels: 2-year -0.661%, 5-year -0.268%, 10-year 0.310% and 30-year

0.970%. There has been modest flattening of the curve since the early morning.

The 2s10s spread has traded down to 95.0bps from a high of 96.1bps, while the

2s30s is down to 161.0bps from 162.3bps.

- There has been more movement in French OATS, with the curve flattening during

the session. The 2s10s spread has narrowed to 110.5bps from 112.6bps and the

2s30s has edged down to 200.0bps from 201.9bps.

- Italian BTPs have rallied since mid-morning. The 2-year yield has pushed down

to 1.275% from a high of 1.359%, the 10-year has traded down to 3.109% from

3.202% and the 30-year yield has fallen to 3.6896% from 3.7446%.

- The Spanish curve has steepened on the back of the front end outperforming.

The 2s30s trades at 282.3bps from 281.7bps at the open.

- The EURIBOR futures strip has steepened with whites/reds flat to 0.5 ticks

lower and greens/blues down 1.0 ticks.