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

BOND SUMMARY: - US TSY yields have inched lower since the early morning. Current

yield levels: 2-year 2.577%, 10-year 2.734%, 30-year 3.049%.

- European PMI data has been mixed. The aggregate Eurozone prints were weaker,

the French services/composite series surprised sharply lower although

manufacturing rebounded slightly, while German manufacturing remains under

pressure.

- Longer-end bund yields have rallied heading into the ECB meeting. The 10-year

benchmark yield trades at 0.209% down from a high of 0.226%.

- The French OAT curve has flattened on the back of the shorter-end selling off

and the longer-end rallying. The 2s30s spread has narrowed to 202.1bps from a

high of 203.8bps.

- Italian BTPs have rallied since the open with yields down 3-6bp lower on the

day. 

- It has been a relatively quiet session so far for gilts with yields down <1bp

from yesterday's close.

- Euro$ futures are 0.5-3.0 ticks higher.