Yet another late collapse in US.........>

EGB SUMMARY: Yet another late collapse in US equities was the talking point

today. Focussed in tech stocks, WSJ blames the drop on increased regulation of

the sector. Whatever the catalyst, it emphasises the fragility of the market.

- The Bund contract opened up slightly; sensitivity to US equities appears

relatively small. The Dax has fallen 0.9% at the open, which is less than the

futures suggested.

- Much talk of a 35k OAT trade vs swaps last night off exchange. Some doubt the

trade thinking it mis-reported.

- The 10Y Bund is -1.4bp at 0.49%, the lowest yield since January 9.

- France has launched it OATei 18Y already with IPTs OATei 07/30 + High 20s.

- Italy sells CCTeu alongside 5Y and 10Y BTPs later this morning. Most research

highlights the 5Y BTP being the best of the trio.

- German GfK consumer morale rose a tick to 10.9 in April from 10.8.

- The data calendar does not appear to be market moving, headlined by a further

revision to Q4 US GDP.