- The US TSY curve has steepened on....>

BOND SUMMARY: - The US TSY curve has steepened on the back of the long end

underperforming with the 2s10s spread widening to 27.3bps from a low of 26.2bps.

- JGBs have traded within a tight range. Key yield levels: 2yr -0.128%, 10yr

0.122%, 30yr 0.866%

- The initial sell-off in German bunds has reversed. The 10-year bund yield has

pushed down to 0.380% from a high of 0.400%.

- French OAT yields have rallied since early morning, with the 2-year down to

-0.431% from -0.417% and the 10-year down to  0.748% from 0.764%.

- The core EGB rally has extended to Italy with yields down 5-7pp across the

curve. 

- Gilt yields are down 2-3pp and the curve is broadly flat on the day.

- Euro$ futures are down 1.5-3.5 ticks while the Euribor futures strip is flat

to 0.5 ticks lower. Short sterling futures are down 3.0 ticks in reds-blues.