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

BOND SUMMARY: - US TSY yields have ticked higher with the 10-year edging up to

3.1997% from a low of 3.1808%.

- JGBs are little moved on the day.

- German bunds have sold off since the open and the curve has steepened. The

2s10s spread has traded up to 105.4bps from 102.3bps.

- The French OAT curve has steepened as a result of the short end rallying and

the longer end selling off. The 2-year benchmark trades at a yield of -0.402%

from -0.391% while the 10-year yield has edged up to 0.834% from 0.820%.

- Italian BTPs rallied strongly at the open on the back of Moody's decision on

Friday to keep Italy's sovereign credit rating at investment grade with stable

outlook. The rally lost momentum an hour after the open, with yields

subsequently reversing. The 2-year benchmark trades at 1.076% from a low of

0.822%.

- Gilt yields have drifted lower this morning with the curve broadly flat.

- Euro$ futures trade mixed. The Euribor futures strip has steepened with

greens/blues down 2.5-3.0 ticks.