- US TSYs have lacked direction this...>

BOND SUMMARY: - US TSYs have lacked direction this morning. Yields are slightly

lower on the day with the 5-year benchmark outperforming the curve. The very

long-end has underperformed causing the 2s30s spread to widen to 46.6bps from a

low of 45.2bps.

- The Mar 19 JGB future trades at 152.59 near the top end of the morning's

range. 

- The short-end of the German bund curve has sold off following the open while

the longer-end has oscillated in a wide range. Current yield levels: 2-year

0.592%, 10-year 0.262%, 30-year 0.8496%

- Italian BTPs have sold off since 1000GMT, with the 2-year benchmark bearing

the brunt. Yields are broadly 3-4bps higher and the curve has flattened. The

2s30s spread has traded down to 318.1bps from 322.45bps.

- Gilt yields have pushed steadily higher this morning with the 30-year yield

trading at 1.798% from 1.739%.

- Euro$ futures are 0.5-3.0 ticks higher. Euribor futures flat in whites-greens