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

BOND SUMMARY: - US TSY yields have ticked higher across the curve with the

10-year benchmark trading at 3.2196% up from a low of 3.2045%.

- There has been little movement in JGBs this morning.

- The longer end of the German bund curve has sold off slightly and the curve

has steepened. The 10-year yield has inched up to 0.554% from 0.529% while the

2s10s spread has widened to 107.6bps from 105.4bps.

- The French OAT curve has similarly steepened on the back of the long end

underperforming. 2s10s has traded up to 124.4bps from 121.5bps.

- It has been another volatile session for Italian BTPs. Heavy selling at the

open pushed the 2-year yield up to 1.525% from 1.395% with the subsequent rally

dragging yields down to 1.397%. 

- Gilts have sold off slightly and the curve has steepened a touch.

- Euro$ futures are down 1.0-1.5 ticks, with Euribor futures also broadly down

1.0-1.5