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

EGB SUMMARY: - The early morning rally in German bunds resumed from midday, with

the curve little changed since the open. The 5-year bund has racked up the

strongest gains in yield terms on the day; currently trading at -0.187% from a

high of -0.1599%.

- French OAT yields have similarly pushed lower throughout the day with the

2s10s trading sideways during the afternoon. The very long end has

underperformed slightly, causing the 2s30s spread to tick up to 205.2 from a

session low of 204.0.

- Having traded sideways for most of the day, the short end of the Italian BTP

curve has sold off over the past hour. The 2-year benchmark yield has surged to

1.243% from an afternoon low of 1.175%, with the intraday range more contained

than in recent sessions.

- The rally in longer end Spanish bonds lost momentum by mid morning, with

broadly sideways trade through to the afternoon. 

- The Euribor futures strip has flattened with greens/blues up 2.5 ticks.