Tuesday was characterised by a relief...>

EGB SUMMARY: Tuesday was characterised by a relief rally in global risk assets,

with periphery bonds the biggest beneficiaries in the EGB space.

- League/5Star reportedly reached agreement on a dispute on building code

legislation; little reaction in BTPs which had already rallied significantly.

- Italy / German 10-Yr spread last 7.9bps tighter at 268.2bps.

- Greece in nearly 7bps as well; Spain and Portugal 3.3-3.4bps narrower.

- German curve a little flatter: 2-Yr yield down 0.1bps at -0.648%, 5-Yr down

0.3bps at -0.574%, 10-Yr down 0.8bps at -0.209%, 30-Yr down 1.3bps at 0.404%.

- EGB futures rolls nearly complete (Schatz/Bobl/Bund/OATs >80% finished) ahead

of Thursday' First Notice/Last Trade date.

- Euribor strip a little stronger, longer-dated contracts up 2-2.5 ticks.

- Latest futures prices:

* Jun Bund futures (RX) up 13 ticks at 168.5 (L: 168.39 / H: 168.68)

* Jun BTP futures (IK) up 87 ticks at 131.8 (L: 130.62 / H: 131.98)

* Jun OAT futures (OA) up 20 ticks at 164.73 (L: 164.5 / H: 164.97)