- The German bund curve has steepened...>

EGB SUMMARY: - The German bund curve has steepened during the session with the

2s10s spread trading up to 102.1bps from 98.9bps. 

- The sell-off in French OATs started to reverse by late morning with yields

drifting lower during the afternoon. The benchmark 2-year OAT trades at a yield

of -0.3595% down from an intraday day high of -0.352% while the 10-year yield

has edged down to 0.830% from 0.840%. The curve has held steady for most of the

day.

- The early-morning sell off in Italian BTPs reversed by late morning and has

since resumed selling off during the afternoon session. Selling has been

heaviest at the front end, which has caused the curve to flatten. The benchmark

2-year BTP yield has pushed up to 1.207% from a low of 1.023%, with the 2s10s

spread narrowing to 200.0bps from a high of 217.7bps.

- The front end of the Spanish curve sold off in the morning and then started to

trade sideways from midday. 

- The Euribor futures strip is flat to 1.0 ticks lower.