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

BOND SUMMARY: - US TSY yields have ticked lower over the past hour with the

2-year benchmark trading at 2.949% from a high of 2.961% while the 10-year yield

trades at 3.221% down from 3.234%.

- JGB yields have drifted lower with the 2-year trading at -0.143% from -0.130%.

- The German curve has flattened on the back of the long-end outperforming. The

2s10s spread has narrowed to 103.4bps from 104.9bps. German trade data for

September disappointed with exports contracting by 0.8% M/M vs +0.4% survey.

- There has been no clear direction in French OATs and little movement in the

curve. Current yields: 2yr -0.400%, 10yr 0.8196%, 30yr 1.685%.

- Italian BTPs have sold off across the curve with the benchmark 2yr yield

surging to 0.964% from a low of 0.886%.

- Gilts have sold off over the past hour and the curve has flattened slightly. 

- Euro$ futures are broadly 0.5 ticks lower while Euribor futures are 0.5-1.5

ticks lower.