- US TSYs initially sold off this......>

BOND SUMMARY: - US TSYs initially sold off this morning but have since pared

losses. The curve is a touch flatter on the back of the longer-end

outperforming. Current yields: 2-year 2.666%, 10-year 2.792%, 30-year 3.017%.

- The Mar 19 JGB future trades at 152.31 in the middle of the day's range.

- German bund yields have drifted lower and the curve has flattened. The 2-year

yield has edged down to -0.603% from -0.596% and the 10-year yield is down to

0.238% from 0.252%.

- Italian BTPs have sold off with the 2-year underperforming the curve. The

2-year benchmark yield trades at 0.501% up from a morning low of 0.432%.

- Gilts lack direction this morning with yields hovering in the middle of the

day's ranges.

- The Eurodollar futures strip has steepened with greens/blues down 2.0-2.5

ticks. the Euribor futures strip is broadly flat/0.5 ticks higher.