- US treasury yields have ticked........>

EGB SUMMARY: - US treasury yields have ticked lower since early morning. The

2-year trades at 2.670%, the 5-year at 2.833% and the 10-year at 2.959%. Initial

jobless claims and PPI data are out later today.

- German bunds rallied from the open, but have given back over the past hour.

The 5-year bund yield has traded up to -0.185% from a low of -0.196%, while the

10-year is up to 0.393% from 0.379%. The 2s10s spread is flat on the day, while

the 2s30s has widened to 165.6bps from a low of 163.8bps.

- French OATs have similarly rallied then reversed since the open.  The 2s30s

spread has also widened to 201bps from 198.7bps on the back of the 30-year yield

pushing up to 1.603% from 1.583%.

- Gilts are under renewed pressure, selling off across the curve. The 2-year has

sold off to 0.740% from a low of 0.720% while the 10-year yield trades at 1.305%

from a morning low of 1.289%.

- Euro$ futures are broadly up 0.5 ticks, while the Euribor futures strip has

flattened with whites down 0.5 ticks and blues/greens up 1.0-1.5 ticks.