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

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

trading at 2.994% up from 2.976%.

- JGBs trade in a tight range with the 10-year holding within 0.102/0.108%.

- The short end of the German bund curve has lacked direction while the longer

end has rallied, causing the curve to steepen. The 2s10s spread has narrowed to

97.6bps from 99.0bps.

- The French OAT curve has also flattened with the 2s30s spread trading down to

199.9bps from a high of 201.4bps.

- Italian BTPs have rallied since the open. The benchmark 2-year BTP trades at

0.678% down from 0.723% and the 10-year is at 2.845% down from 2.888%.

- The gilt curve is a touch steeper with the 2s10s ticking up to 105.9bps from

104.9bps.

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

higher.