- US Treasuries are holding within a...>

BOND SUMMARY: - US Treasuries are holding within a tight range, with the 2-year

benchmark trading at 2.795% and the 10-year at 3.065%.

- There is similarly little movement in JGBs with the curve flat overall.

- It is a choppy session for gilts, which are broadly trading sideways. We have

seen significant short sterling option flow this morning, mainly in put spreads.

- The German bund curve has steepened slightly with the 2s10s spread ticking up

to 100.6bps from 98.9bps.

- The shorter end of the French OAT curve has rallied over the past hour with

the 2-year benchmark trading at -0.366% down from a session high of -0.357%. The

curve has steepened with the 2s10s spread pushing up to 115.0bps from 113.2bps.

- Italian BTPs have rallied across the curve with the 2-year yield edging down

to 0.705% from 0.735% and the 10-year trading at 2.818% down from 2.858%.

- Euro$ futures are broadly 0.5-1.5 ticks lower. Euribor futures whites are down

0.5 ticks and greens/blues are up 0.5 ticks.