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

EGB SUMMARY: - The shorter-end of the German bund curve has lacked direction

today, while the longer-end has rallied. The 10-year benchmark yield has pushed

down to 0.278% from a high of 0.299%, while the 2s10s spread has narrowed to

88.4bps from 90.2bps. The very long-end of the curve has outperformed with the

30-year yield trading down to 0.931% from 0.961%.

- The French curve has, conversely, steepened as yields have pushed lower at the

short end. The 2-year yield trades at -0.474% down from -0.462%. The 2s30s

spread is 2bps flatter on the day.

- In sharp contrast to recent sessions, Italian BTPs have traded sideways and

within a relatively tight range. The 2-year has held within a 0.651/0.701% range

and the 10-year has traded within a 3.135%/3.185% range.

- Spanish government bonds have rallied since 1430 BST with yields at the longer

end down 1-1.5pp.

- The Euribor futures strip has flattened with whites flat/1.0 ticks lower and

greens/blues up 1.0-2.0 ticks.