- US TSY yields have pushed higher.....>

BOND SUMMARY: - US TSY yields have pushed higher with the 2-year trading at

2.843% from a low of 2.814% and the 10-year trading at 3.119% from 3.081%.

- The JGB curve is a touch steeper with the 2s10s spread ticking up to 23.3bps

from 21.9bps.

- German bunds sold off initially as the market continues to digest the

implications of Chancellor Angela Merkel standing down as party leader, but have

since pulled back. The 2-year trades at -0.631% from a high of -0.622% while the

10-year trades at 0.381% down from 0.402%.

- The French OAT curve has steepened with the 2s10s trading up to 116.9bps from

114.5bps.

- The rally in Italian BTPs has proved short lived. The 2-year yield has surged

to 1.022% from a morning low of 0.887%. This follows the release of weaker than

expected GDP data for the third quarter (0.0% Q/Q vs 0.2% survey).

- The gilt market seems to have shrugged off yesterday's budget. The curve is

slightly flatter on the day.

- Euro$ futures are down 1.5-4.0 ticks, Euribor is broadly flat/0.5 ticks down.