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

BOND SUMMARY: - US TSY yields have ticked higher with slight underperformance at

the short end. The 2-year benchmark yield trades at 2.824% up from a low of

2.801%.

- The Dec JGB future trades at 151.07 off a high of 151.11.

- Bunds initially opened weak but have since traded sideways with the curve

flat. Current yields: 2-year -0.586%, 10-year 0.369%, 30-year 1.030%.

- French OATS have sold off, led by the short end. The 2-year yield trades at

-0.449% up from a low of -0.463%.

- An erroneous Reuters headline has roiled BTPs this morning. The 2-year yield

initially plunged to a low of 1.207% from 1.350% at the open and then pulled

back to 1.282%. The 2-year currently trades at 1.266%.

- There has been limited movement in gilts this morning and the curve is broadly

flat.

- The short sterling futures strip is off 2.0 ticks. Euro% underperform in the

reds/greens and Euribor futures are flat to 1.0 ticks lower.