A choppy start for EGBs on the bell,...>

BOND SUMMARY: A choppy start for EGBs on the bell, but still trading within

tight ranges. 

-Initial price action, was mainly coming from the FX side and particularly the

USD, which was sold across the board. 

-Equities are extending gains bid on the USD move, and as such, upside in EGB's

have been limited with futures contracts trading in negative territory this

morning.

-Peripheral: Spain, Portugal, Greece and Italy are circa 1bps wider against the

German 10yr. 

-Gilts, saw UK data release: GDP hit a bit more than expected with manufacturing

and construction falling more than expected. No reaction in the 10yr.

-Treasuries are seeing small better bear steepening, following the bull

flattening yesterday. US 5/30s test the high of the, but still far yesterday's

levels. 

- USD selling and S&P gains, is putting small pressure into the longer part of

the futures strip.