RESEND: The sell off in German bunds...>

EGB SUMMARY: RESEND:  The sell off in German bunds from 1300BST has reversed.

The

10-year benchmark trades at a yield of 0.564% up from a low of 0.5299%. The

curve has steepened throughout the day with the 2s10s spread pushing up to

108.4bps from 105.4bps.

- French OATs similarly hit a bout of selling between 1300-1400BST which

subsequently reversed. Longer end yields have broadly drifted higher across the

session. The 10-year yield has edged up to 0.912% from 0.876% and the 30-year is

up to 1.744% from 1.713%.

- BTPs have rallied hard since the morning session with the 2-year benchmark

trading at a yield of 1.355% down from 1.534%.

- Price action of Spanish bonds has been comparatively tame. The 2s10s has

widened 6bps on the day.

- The Euribor futures strip is down 1.0-3.0 ticks