- The German bund curve has flattened...>

EGB SUMMARY: - The German bund curve has flattened during the day on the back of

short-end yields edging up. The benchmark 2-year bund trades at -0.619% up from

a morning low of -0.629%, while the 2s10s spread has narrowed to 100.1bps from

101.4bps.

- The short end of the French OAT curve has rallied since the open with the

2-year trading at -0.429% from -0.417%.

-  Trading in Italian BTPs has been relatively contained compared to recent

sessions with yields down 6-8bps from the highs. The curve is steeper with 2s10s

up 7bps and the 2s30s widening by 9bps. With mounting signs of a slowdown in

growth and labour market data released today indicating a significant uptick in

unemployment, the Italian government has remained adamant that it will persevere

with its spending plans.

- Spanish bond yields have drifted lower across the curve with the 10-year

trading at 1.550% down from 1.579%.

- The Euribor futures strip is broadly 0.5-2.0 ticks lower.