BUZZ-European stocks: market suffering from 'one-legged unwind'

** Equity market sell-off on further spike in bond yields being exacerbated by reluctance to put money to work until Greek deal reached

** Ten year bund yields at year highs, euro also spiking to five-month highs in a continuing reversal of late 2014/early 2015 trend

** Yield plays being aggressively sold but stocks tending to benefit from rising rates not seeing a bid in what one trader called a "one legged unwind"

** Stoxx 600 Utilities index falls 1.7 pct, most traded sector on Stoxx 600 at nearly double the index average (ex-div National Grid (LSE: NG.L - news) taking most points off index)

** By contrast, Stoxx 600 Banks index among best performing but in lacklustre volume, running well below average. Chart: http://link.reuters.com/zym84w

** Trader says discrepancy suggests investors unwilling to put fresh money into banks, among the best performers during rising yield environment, until further clarification on Greece negotiations

** Heightened futures-to-cash ratios across the market as single stocks become harder to trade on falling liquidity

(RM (LSE: RM.L - news) : alasdair.pal.thomsonreuters.com@reuters.net)