- The German bund curve has flattened...>

EGB SUMMARY: - The German bund curve has flattened since early morning on the

back of the short end underperforming and the longer end rallying. The 2s10s

spread has narrowed to 92.9bps from a high of 94.6bps, while the 2s30s is down

to 160.9bps from 162.3bps. The Deutsche Finanzagentur sold two linkers earlier

today, with the 0.10% Apr-46 being technically uncovered.

- French OAT yields have drifted lower during the session. The benchmark 10-year

yield has traded down to 0.693% from a high of 0.704%, while the 30-year is down

to 1.597% from 1.605%.   

- Italian BTPs have rallied since the open and the curve has steepened. The

benchmark 10-year BTP yield has pushed down to 3.081% from 3.159%, with the

2s10s spread trading up to 182.7bps from 172.3bps.

- The longer end of the Spanish curve has outperformed. The 10-year benchmark

trades at a yield of 1.430% down from 1.451% and the 30-year at 2.584% from

2.611%.

- The Euribor futures strip is flat to 0.5 ticks lower.