*** Morgan Stanley expect an...>

MONTH-END EXTENSIONS: *** Morgan Stanley expect an extension of 0.115y for the

broad euro government bond index, in line with an average October (0.116y) but

higher than an average monthly extension (0.08y). See the largest extension of

0.16y in the 10-15y sector, while on a country basis, Ireland will extend the

most, by 0.47y, followed by France, 0.193y, Spain, 0.16y and Germany extending

by 0.11y. In addition, Austria, Spain, Belgium and Germany will have notable

sector-wise extensions due to bonds changing indices.

- For the Euro inflation-linked index they expect 0.009y of extension compared

to an average October extension of 0.06y and an average monthly extension of

0.07y.