***Sources tell of: * CASH: - Buyers of.......>

EGBS: ***Sources tell of: 

* CASH:

- Buyers of Bunds and Bonos. Italian mutual funds selling short-dated BTPs early

this morning but are now on the buy-side in 5 and 10Y paper. Also, buyers of

Portugal and Italy over recent days, although not thematic. Many people

reporting that flows are fairly thin.  

* EUR SWAPS FROM SEF: 

- Flows in EUR swaps 

- At 14:04BST there appeared to be a EUR40k DV01 2Y-5Y STEEPENER at 42.35bp 

- At 13:57BST there appeared to be a EUR141.5k DV01 5Y-10Y FLATTENER at 64.95bp

- At 14:09BST there appeared to be a EUR82mln payer of EUR 15Y at 1.29% 

- At 14:09BST there appeared to be a EUR120mln payer of EUR 10Y at 0.886%

- In dollars. We hear of 2-7Y steepener trades in swaps and buyers of current

and off-the-run 10s and 30s)

* FUTURES

- RXZ7 2,000 at 161.73 IKZ7 2,690 at 137.97. Likely buying Italy.