This morning's slew of weak data will...>

EGB SUMMARY: This morning's slew of weak data will ratchet up pressure on the

ECB, which was last week forced to acknowledge the shifting balance of risks.

- The longer-end of the German bund curve has rallied slightly since 1000GMT

with yields down 1bps from the highs. The short-end has outperformed the rally

with the curve steepening. 2s10s has pushed up to 132.4bps from a low of

124.6bps.  

- French OATs have traced out a similar path during the morning session. Yields

are down <1bps from yesterday's close, with the curve steepening slightly since

the early morning.

- Reminiscent of trading ranges during last year's budget fiasco, Italian BTP

yields are up 10-18bps on the day following the particularly weak manufacturing

PMI print for January (47.8 vs 48.8 survey)

- Spanish government bonds have lacked direction this morning with yields near

the middle of the day's range.

- Euribor futures are flat/0.5 ticks lower in whites/reds and 1.0-1.5 ticks

lower in greens/blues.