The rally in core EGBs has petered......>

EGB SUMMARY: The rally in core EGBs has petered out, while peripheral yields

have pushed lower.

- The German curve is broadly unchanged since the open. The benchmark 2-year

bund yield trades at -0.674% in line with the open, while the 10-year has traded

up to 0.329% from a session low of 0.304%.

- Having rallied during the morning, the French 2-year OAT yield has reversed to

-0.456% from a low of -0.469%. The 10-year rally has proven more durable, with

the yield pushing down to 0.712% from 0.736% at the open.

- The move lower in the Italian curve has been more decisive. the 2-year BTP

yield has traded down to 0.865% from a high of 1.058%, with the 10-year

similarly down to 2.791% from 2.919%.

- There has been limited movement in the EURIBOR futures strip. Greens and Blues

are down 0.5 ticks.

- Preliminary Eurozone CPI data is published on Friday and before that the

estimates for Spain, Italy and Germany are due on Thursday.