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

EGB SUMMARY: - The short end of the German bund curve has rallied from the open.

The 2-year benchmark trades at a yield of -0.635% down from -0.624%. The curve

is a touch steeper with the 2s10s spread inching up to 100.1bps from a low of

98.7bps.

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

outperformance. The 2-year yield has pushed down to -0.436% from -0.423% and the

2s10s has traded up to 118.6bps from 115.6bps.

- Italian BTPs lack clear direction. The 2-year BTP yield is oscillating in a

1.157/1.215% range and the 10-year trades in a 3.491/3.521% range.

- Spanish bond yields are trading in the middle of the day's range and the curve

has steepened with 2s30s up 3bps.

- The Euribor futures strip has flattened with greens/blues up 1.0-1.5 ticks.

- We saw a large Schatz option block hit the screen from 08:01:46: +40k DUF9

112.20/111.60 combo (+c/-p) at 1.5 hefty +0.42 delta -mkt src