Roiled by the ongoing fallout over......>

EGB SUMMARY: Roiled by the ongoing fallout over the government's budget plans,

the BTP market has been especially volatile today. In the UK, the Conservative

Party conference has drip-fed headlines through the day, but with little of

substance on Brexit and limited impact on EGBs. 

- German bunds have sold off and the curve has steepened. The 2-year benchmark

trades at -0.542% up from a low of -0.562% and the 10-year trades at 0.469% from

0.432%, while the 2s10s spread has widened to 100.3bps from 95.96bps.

- French OAT yields have drifted higher with the 10-year yield pushing up to

0.808% from a low of 0.783%.

- The shorter end of the Italian BTP yield have been particularly volatile. The

2-year BTP rallied hard from the open, reversed most of the gains by mid-morning

and rallied again towards the day's highs. The yield has traded within a

1.164-1.412% range.

- The Spanish curve has steepened on the back of the longer end selling off,

with the 2s10s spread trading up to 171.2bps from 167.9bps.

- The Euribor futures strip has steepened with greens/blues down 3.0-5.0 ticks.