Risk-off has been the name of the.......>

EGB SUMMARY: Risk-off has been the name of the game today with the major

Eurozone stock indices down more than 3% on the day, Brent crude down $1.52/bbl

at writing and core bonds rallying globally. A risk-off start to the day was not

helped by poor US data - Empire manufacturing, retail sales and industrial

production all missed expectations.

- Bunds are marginally outperforming Treasuries today with 10y yields 8.9bp

lower on the day, with Bund yields now at their lowest level since April 1.

- Peripheral spreads have also widened substantially today with 10y BTP spreads

as much as 29p wider on the day earlier. Spanish and Portuguese spreads both

double digits wider and GGBs the underperformers (particularly not helped by the

E2.0bln 7-year Greek syndication held today). Latest levels:

* Jun Bund futures (RX) up 112 ticks at 172.66 (L: 171.36 / H: 172.77)

* Germany: The 2-Yr yield is down 3.2bps at -0.692%, 5-Yr is down 6.5bps at

-0.656%, 10-Yr is down 9.1bps at -0.468%, and 30-Yr is down 10.7bps at -0.073%.

* Jun BTP futures (IK) down 142 ticks at 136.97 (L: 135.72 / H: 138.48)

* Italy / German 10-Yr spread 18.6bps wider at 234.8bps