- US TSY yields have inched lower......>

BOND SUMMARY: - US TSY yields have inched lower with the curve a touch flatter.

The 2-year yield trades at 2.585% down from a high of 2.615% while the 2s10s

spread has traded down to 17.4bps from 19.1bps.

- The Mar 19 JGB future trades at 152.44 near the high's of the day.

- German bunds have rallied since the open, with the short-end outperforming.

Yields are 1-3bps lower across the curve and the 2s10s spread has widened to

85.0bps from 82.9bps.

- OATs have similarly rallied and the curve has steepened. The 3-year yield

trades at -0.328% down from a high of -0.303%.

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

rallied. The 10-year benchmark trades at 2.8396% down from 2.8958%.

- Gilts rallied from the open but started to reverse gains from 0845GMT. Yields

are now trading near yesterday's close.

- The Euro$ futures strip has flattened with greens/blues up 2.5-5.0 ticks.

Euribor futures are broadly flat to 0.5 ticks higher.