- The German bund curve has steepened...>

EGB SUMMARY: - The German bund curve has steepened progressively throughout the

day as longer-end yields have drifted higher. The 2-year yield trades at -0.601%

up from -0.621% while the 10-year trades at 0.211% from 0.158% and has

underperformed the curve on the day. The 2s10s spread has widened to 80.5bps

from 75.6bps.

- The short-end of the French OAT curve rallied from the open but traded

sideways through most of the day, while the longer-end has progressively sold

off. 2s30s has been relatively flat for most of the day.

- The Italian BTP curve has steepened sharply with 2s10s and 2s30s widening

9-10bps on the day. The Services and Composite PMI data released earlier in the

day was a touch better than expected, but only borderline expansionary.

Mirroring the wider euro area, headline inflation fell in December.

- Spanish yields have pushed higher across the curve with the long-end

undeforming.

- The Euribor futures strip has steepened with greens/blues down 5.0-7.0 ticks.