- The short end of the bund curve.......>

EGB SUMMARY: - The short end of the bund curve sold off during the morning

session and has traded sideways during the afternoon while the longer-end has

lacked direction and trades within a 0.381-0.405% range.

- The French OAT curve has flattened throughout the course of the day with the

2s10s spread narrowing to 117.5bps from a high of 119.1bps. The 10-year has

outperformed the curve with the yield pushing down to 0.764% from a high of

0.786%.

- Although Italian BTPs have been the big mover among EGBs, the daily trading

range is tighter than in recent sessions. The benchmark 2-year BTP yield surged

to a high of 1.069% from 0.993% at the open and then fell back to 1.016%.

- The short end of the Spanish curve has traded sideways since mid morning while

the longer end has rallied since midday. The 10-year benchmark yield has edged

down to 1.592% from a high of 1.608%.

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