- The German curve has steepened........>

EGB SUMMARY: - The German curve has steepened since the morning on the back of

the long-end underperforming. The benchmark 10-year bund yield has pushed up to

0.403% from a low of 0.374% while the 2s10s spread has traded up to 94.7bps from

92.4bps.

- French OATs have traded flat during the session, with little movement in the

curve. The 2-year OAT has traded within a -0.406/-0.395% range, while the

10-year has held within a 0.701/0.728% range.

- Italian BTPs rallied at the open, but lost momentum in morning trading. The

front end outperformed, causing the curve to steepen. The 2-year BTP trades at

0.7495%, down from an intraday high of 0.8725%. The 2s10s spread has widened to

216.8bps from a low of 208.5bps. 

- The long end of the Spanish curve has oscillated within a fairly tight range

and the curve is slightly steeper on the day.

- The Euribor futures strip is flat to 1.5 ticks lower.