Repeating a pattern seen over the.......>

EGB SUMMARY: Repeating a pattern seen over the past couple of weeks, EGBs once

again had a sharp reversal Monday around the time of the US crossover.

- Bunds had retraced early modest losses, but beginning just before 1400BST

began selling off to one-month lows, with the curve steepening sharply. 2-Yr

yields are up by 1.1bps to -0.606%, with 10-Yrs up 2.6bps at 0.396%.

- Periphery EGBs are broadly weaker as risk spreads widened slightly and Bund

yields spiked. 10-Yr BTPs bore the brunt on the Italian curve, with yields up

3.8bps at 2.63% (spread over Bunds up 1.2bps).

- The exception among peripheries is Portugal, with 10-Yr PGB yields down

2.0bps, bringing the spread over Bunds down by 4.5bps at 136.7bps.

- Euribor futures are slightly weaker, particularly at the long end of the

strip. Green contracts are off 1.0-1.5 ticks, with Blues down 1.5-2.0 ticks.

- After a quiet day of European data Monday, Tuesday sees a pickup with flash

PMIs for France, Germany and EMU. ECB meeting Thursday eyed for possible clarity

on plans to wind down APP by year-end and any comments on re-investment.