No major change in policy is...........>

BOND SUMMARY: No major change in policy is expected from the ECB, with the

market looking for further clarity on the reinvestment policy and an update on

the GCs view of underlying inflation. 

- US TSYs has sold off this morning with the 10-year benchmark yield pushing up

to 3.124% from 3.098%.

- JGBs yields have inched lower with slight outperformance at the longer end.

- German bunds have sold off with the 10-year bund trading at a yield of 0.396%

up from a low of 0.375%.

- French OATS have followed bunds lower, with the 5-year yield pushing up to

0.115% from a low of 0.089%.

- Italian BTPs have rallied with the 2-year yield trading down to 1.167% from

1.232%

- The UK gilt curve has flattened as a result of the shorter end

underperforming. The 2s10s spread has narrowed to 69.5bps from 70.5bps.  

- Euro$ futures are broadly flat, while the Euribor futures strips has

steepened.