A bit of bull flattening across........>

BOND SUMMARY: A bit of bull flattening across UK/German/US curves with futures

flat/up though off best levels of the day, with a spurt higher in equities

around 1000BST - no catalyst that we could see.

- Periphery spreads wider amid the broader risk off move (and failure to reach

any kind of accord at Thursday's European Council), led by Greek

underperformance (10-Yr spread 15.7bps wider at 293.9bps). Italy spreads off

wides, 10-Yr BTP/Bunds last 9.6bps wider at 250.6bps (H: 256.8bps).

- Weak German IFO for April/UK retail sales for March had little lasting impact.

- At midday BST the BOE will announce purchases for next week's QE operations.

We look for another GBP13.5bln of gilt purchases next week (see 0745BST bullet).

- Focus beyond that is on U.S. data: final U. of Mich. Sentiment, as well as

flash durable goods orders. Latest levels:

* Jun 10-Yr futures (TY) down 1/32 at 138-31.5 (L: 138-31.5 / H: 139-07.5)

* Jun Bund futures (RX) up 32 ticks at 172.42 (L: 172.27 / H: 172.87)

* Jun Gilt futures (G) up 7 ticks at 137.1 (L: 137.09 / H: 137.45)

* Jun BTP futures (IK) down 69 ticks at 135.19 (L: 134.61 / H: 135.46)