- US Treasury yields have ticked.......>

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

edging down to 2.966% from 2.974%.

- JGBs have posted modest gains with the 10-year trading at 0.106% from 0.113%.

- German bunds have lacked direction, with yields drifting slightly lower. The

2-year bund trades at -0.549% down from -0.544%, while the 10-year is down to

0.421% from 0.428%.  The curve is broadly flat on the day.

- French OATs have rallied across the board and the curve has flattened slightly

on the back of the long end outperforming. The 2s10s spread has narrowed to

111.4bps. from a morning high of 112.3bps.

- Italian BTPs have rallied strongly from early morning. The 2-year BTP yield

has pushed down 0.752% from 0.832%.

- The shorter end of the gilt curve has lacked direction while the longer end

has rallied. The 10-year gilt yield has traded down to 1.491% from a high of

1.500%.

- Euro$ futures are 0.5-2.0 ticks higher while the Euribor futures strip is flat

to 1.0 ticks higher.