- The early morning rally in German.....>

EGB SUMMARY: - The early morning rally in German bunds has reversed. The

benchmark 2-year bund yield has edged up to -0.628% from a low of -0.645% while

the 10-year is up to 0.347% from 0.332%. The curve has flattened since the open,

but has stabilised over the past hour.

- French OATs have mirrored the move in bunds. The 2-year has tracked back to

-0.448% from a morning low of -0.464%, while the 10-year is back to 0.686% from

0.675%. The 2s30s spread continues to narrow and has traded down to 200.2 bps

from a high of 202.0bps.

- Italian BTPs have had a choppy morning session on the back of Di Maio's budget

comments. The 2-year benchmark has oscillated within a 1.003-1.114% range and

currently trades at 1.027%. There is little overall direction in the curve.

- Spanish bonds have sold off over the past two hours. The 10-year is trading at

1.386% from a low of 1.378%, while the 30-year is up to 2.499% from 2.482%.

- The Euribor futures strip has flattened with greens/blues up 2.0-3.0 ticks.