Robust rally in EGB periphery this.....>

BOND SUMMARY: Robust rally in EGB periphery this morning

- US treasury yields have pushed higher since early morning. Levels: 2-year

2.600%, 5-year 2.716%, 10-year 2.835%, 30-year 2.998%.

- The JGB curve has flattened marginally on the back of the long end

outperforming. The benchmark 10-year yield has edged down to 0.081% from 0.093%

and the 2s10s is down to 19.7bps from 21.0bps

- The German curve has steepened slightly since the open with the 2s10s widening

to 92.0bps from a low of 90.5, while the 2s30s is up to 158.3bps from 157.2bps.

-  The short-end of the French OAT curve has sold off, while the longer end has

lacked direction. The 10-year OAT yield has oscillated within a 0.652-0.663%

range.

- Strong moves in Italian BTPs. The 2-year yield is down to 1.040% from 1.185%

and the 10-year has pushed down to 2.939% from 3.0096%. The 2s30s spread has

widened 14bps

- Gilts are trading within a relatively tight range.

- Euro$ futures down 1.0-2.0 ticks. Euribor futures down 0.5-1.0 ticks.