Bunds: GOOD domestic and Asian RM buying of Bunds around 116.00/10 (buyers' of 10yr and 15yr EUR cash) with TALK or more to come below 116 handle. DB quote: iTraxx Xover tightens a touch to 524/526 vs 528 open and vs 543 y'day- the Main index 96 3/4/97 1/2. The Crossover and the Main index saw a mixture of ealy profit taking and shorts being reset (tested 523 and 95 1/2) USTs: 10yr behind 3.75% seem to garner domestic and overseas RM demand, so we're wathcing this level today. 30yr made new yld highs y'day since the auction (testing 4.50%) with talk of heavy PAYing in swaps- swap spds retested 49bp level. Swap spreads in general widened y'day with the repo situation in 5s supporting wider spds. In Bunds, desks' see 4% in 10yr EGB yld as good resistance. Break here targets 4.07%. Huge supply this week has taken its toll on Eur Govies. Euribors: erh8 9562/9550 1x2 ps bought at 1.5 in 12,500