- US treasuries have rallied across....>

BOND SUMMARY: - US treasuries have rallied across the curve, with the front end

outperforming. The 2-year benchmark trades at 2.641%, down from a high of

2.662%. 

- The JGB curve has flattened with the 2s30s spread narrowing to 94.9bps from

96.6bps.

- German bunds have sold off since the open, but the curve is relatively

unchanged on the day. The 2-year bund yield trades at -0.578% up from -0.596%

and the 10-year at 0.365% from 0.343%.

- As a result of the long end underperforming, the French OAT curve has

steepened. The 2s10s spread has traded up to 111.9bps from 110.1bps while the

2s30s has widened to 201.9bps from 200.1bps.

- Italian bonds have oscillated since the open, with yields drifting lower. 

- Gilts have lacked direction this morning. Key levels: 2-year 0.726%, 5-year

1.014%, 10-year 1.417%, 30-year 1.773%.

- Euro$ futures are 0.5-2.0 ticks higher. The EURIBOR futures strip has

steepened with whites up 0.5 ticks and blues flat to 0.5 ticks lower.