- US TSY yields have pushed steadily...>

BOND SUMMARY: - US TSY yields have pushed steadily higher across the curve. The

2-year trades at 2.818% from a low of 2.794% while the 10-year is up to 2.085%

from 3.054%. The curve has steepened slightly with the 2s10s spread widening to

26.4bps from a low of 25.1bps.

- There has been little movement in JGBs

- UK gilts have rallied with the short-end outperforming. The 2s10s spread has

traded up to 68.8bps from 67.3bps.

- German bunds have pared back some of the early morning losses with the very

long-end outperforming. The 30-year yield has pulled back to 1.051% from a high

of 1.062%.

- The sell-off in French OATs has similarly started to reverse, while the curve

is 1-2bp steeper on the day.

- Italian BTPs have lacked clear direction, with volatility more subdued than in

recent trading.

- Euro$ futures are down 0.5-1.0 ticks while the Euribor future strip has

steepened with whites flat and greens/blues off 0.5-1.0 ticks.