A hawkish Mario Draghi led to a........>

GILT SUMMARY: A hawkish Mario Draghi led to a broad sell-off in European bonds

which hit Gilts, though they are off day`s lows.

- The Dec 18 Gilt future is down 36 ticks at 120.84, having traded in a range of

120.67-121.28 today - with day`s low coming after ECB President Draghi`s

testimony to European Parliament (highlighted by view of a 'relatively vigorous'

pick-up in core inflation) were released around 1400BST.

- The Gilt curve has bear steepened on the news, with the 2-Yr yield is up

0.7bps at 0.817%, 5-Yr is up 2.9bps at 1.173%, 10-Yr is up 3.9bps at 1.592%, and

30-Yr is up 4.4bps at 1.941%.

- Short Sterling is weaker, with losses concentrated in the far end of the

strip, March21-Sep22 down 3.0 ticks.

- On Tuesday, DMO re-opens 0.125% Aug-48 inflation-linked Gilt for Stg. 0.8bln;

BOE`s Vlieghe speaks in the morning with Q&A.