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

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

trading at 3.059% up from 3.046%.

- Similarly, the 10-year JGB yield has edged up to 0.116% up from 0.112%.

- Following the UK August CPI surprise (2.7% Y/Y vs 2.4% survey) gilts sold off

sharply but have since recouped losses. Having hit a session high of 1.617%, the

10-year benchmark yield dropped back down to 1.599%.

- The shorter end of the German bund curve has traded sideways while yields at

the longer end have drifted higher in an oscillating fashion. The curve has

steepened with the 2s10s spread widening to 101.0bps up from 99.0bps.

- The French curve has similarly steepened with the 2s30s trading up to 202.4bps

up from 200.8bps.

- Italian BTPs have sold off across the curve. The 2-year BTP trades at 0.677%

up from 0.586%% and the 10-year trades at 2.818% up from 2.759%.

- Euro$ futures are down 0.5-2.0 ticks. Euribor futures are flat to 1.5 ticks

lower.