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

BOND SUMMARY: - US treasury yields have ticked lower with the 10-year benchmark

trading at 2.8695% down from 2.8785%.

- JGBs are trading in a tight range. Key levels: 2-year -0.126%, 5-year -0.085%,

10-year 0.089%, 30-year 0.831%

- The front end of the German bund curve has lacked direction while yields at

the longer end have drifted higher. The 10-year trades at 0.380% from a low of

0.369%, while the 2s30s spread has widened to 162.8bps from 161.9bps.

- French OATs have oscillated in a tight range, with the curve slightly steeper.

The 2s10s spread has widened to 112.5bps from 110.0bps and the 2s30s has traded

up to 201.7bps from 198.9bps.

- The early morning sell off in BTPs has reversed with the 2-year yield pushing

down to 1.205% from a session high of 1.265%.

- The gilt curve has flattened slightly as a result of the short end selling

off.

- Euro% futures are broadly 0.5-1.0 ticks higher. Euribor futures are flat to

0.5 ticks higher.