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

EGB SUMMARY: - The short end of the German bund curve has traded sideways since

early morning while the longer end has sold off. The benchmark 10-year bund

yield trades at 0.435% up from 0.402%, while the 2s10s spread has pushed up to

96.8bps from 93.8bps.

-  The French OAT curve has similarly steepened on the back of the long end

underperforming. The 2s10s has traded up to 112.2bps from 109.3bps and the 2s30s

up to 202.0bps from 199.4bps.

- Italian BTPs have sold off across the curve since midday. The 2-year benchmark

trades at 0.755% up from 0.654% and the spread over the comparable German bund

has widened to 129.2bps from 119.4bps.

- Spanish longer end bonds have also sold off since midday. The 10-year yield

has pushed up to 1.458% from 1.440% and the 30-year up to 2.588% from 2.567%.

- The Euribor futures strip has steepened, with greens/blues down 1.0-2.0 ticks.