- On the back of the longer-end.........>

EGB SUMMARY: - On the back of the longer-end rallying, the German bund curve has

flattened over the last hour. The 10-year yield trades at 0.377% down from

0.392% while the 2s10s spread has narrowed to 95.5bps from 96.6bps.

- The shorter-end of the French OAT curve has lacked direction with yields

settling in the middle of the day's range. Yields have drifted higher at the

long-end with the 10-year trading at 0.780% up from a low of 0.7597%.

- Italian BTPs have sold off since mid-morning with the longer end

underperforming. The 2s10s is 8bps steeper on the day.

- The short-end of the Spanish curve has traded sideways since the morning while

yields at the longer end have edged higher. 

- The Euribor futures strip is flat to 0.5 ticks higher in whites and broadly

0.5 ticks lower in greens/blues.

- Looking ahead to tomorrow, the main data release with by the French employment

numbers for the third quarter.