- While the yields at the shorter end...>

EGB SUMMARY: - While the yields at the shorter end of the German bund curve have

continued to push higher through the day, the sell-off at the very long end has

reversed. The benchmark 30-year bund trades at 1.106% down from a session high

of 1.124% with the 2s30s spread narrowing to 163.3bps from a high of 165.2bps.

- The very long end of the French OAT curve has similarly rallied over the past

hour. The 2s30s spread has narrowed to 201.1bps from a high of 202.9bps while

the 2s10s spread has been relatively flat.

- Italian BTPs have rallied throughout the day on the back of signs that the

government's budget plans will be less expansionary than initially thought, with

yields trading around the lows of the day. The benchmark 2-year BTP trades at

0.687% down from a high of 0.809%. As a result of the short end outperforming

the 2s10s spread has widened to 216.5bps from 207.7bps.

- Spanish yields have broadly edged higher through the day and the curve is

slightly flatter.

- The Euribor futures strip has steepened with greens/blues down 1.0-1.5 ticks.