Striking a far more confrontational.....>

EGB SUMMARY: Striking a far more confrontational tone, the UK Prime Minister

issued a stern warning to EU leaders demanding more cooperation. There appears

to have been limited impact on EGBs. 

- German bund yields have ticked lower since midday, while the curve has

remained broadly flat. The 2-year benchmark trades at -0.545% down from an

afternoon high of -0.537% while the 10-year is down to 0.453% from 0.466%.

- French OAT yields are trading around the lows of the day. The 2year OAT trades

at -0.381% down from -0.369% and the 10-year trades at 0.775% down from 0.796%.

- Italian BTPs have recently surged. The 2-year trades at 0.760% down from an

intraday high of 0.822%.

- Spanish government bonds have rallied throughout the session, but the curve

has been little changed since the early morning.

- Euribor futures are broadly 0.5-1.5 ticks higher.