- Slight steepening of the US..........>

BOND SUMMARY: - Slight steepening of the US treasury curve. The 2s30s spread has

widened to 36.1bps from 35.1bps. The benchmark 10-year US treasury trades at

2.8297% up from 2.802%.

- JGB yields have ticked higher. The 2-year currently trades at -0.121% and the

10-year at 0.095%.

- Modest rally in German bunds across the curve. The 2-year bund yield trades at

-0.605% down from -0.598% and the 10-year down to 0.340% from 0.349%. The curve

is flat on the day.

- French OATs have similarly rallied. Key levels: 2-year -0.443%, 5-year 0.011%,

10-year 0.673%, 30-year 1.561%.

- Italian BTPs have sold off this morning. The 2-year yield has pushed up to

1.178% from 1.097%, while the 10-year is up to 3.114% from 3.067%.

- Gilt yields tick lower and continue to trade in a relatively tight range.

- EURIBOR futures are flat. Euro$ futures are down 0.5-2.0 ticks.