- Selling pressure at the longer end....>

EGB SUMMARY: - Selling pressure at the longer end of the German bund has

subsided, with the curve flattening during the afternoon. The 30-year bund

trades at 0.845% down from 0.860% while the 2s30s spread has narrowed to

143.9bps from 146.4bps. 

- French OATs have sold off, with the longer-end paring losses. Yields are

broadly 1-2bps higher on the day. 

- Italian BTPs have continued to rally throughout the day with the

3-/5-/7-/10-year benchmark yields dropping >10bp since yesterday's close. The

very long-end has underperformed the rally, with the 30-year yield down 7.6bps

on the day and the 2s30s 4bp steeper.

- The Spanish curve has traded mixed. Short-end yields have pushed lower

throughout the day, the 10-year benchmark has oscillated within a 2bps range,

while the 30-year has sold off slightly.

- Euribor futures are flat in whites and down 0.5-2.5 ticks in

reds/greens/blues.