With time running out to agree an.......>

EGB SUMMARY: With time running out to agree an amicable divorce between

Westminster and Brussels, EU leaders are at odds over whether to offer the UK a

lifeline by extending the negotiation period. 

- German bunds have traded in a tight range so far and lack direction. Current

yield levels: 2-year -0.585%, 10-year 0.254%, 30-year 0.853%. The curve has

flattened slightly with 2s30s narrowing 2bps.

- The French OAT curve is trading mixed. Short-end yields are little changed,

while the longer end has oscillated in a narrow range. The curve is broadly

flat. 

- The Italian BTP curve has steepened with 2s30s trading up to 328.7bps from

327.2bps.

- The Spanish curve is trading close to unch. Current yield levels: 2-year

-0.247%, 10-year 1.343%, 30-year 2.562%.

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

- The data calendar is light today. Next up will be the German ZEW data for

January which will be published tomorrow.