Ahead of today's ECB meeting core......>

BOND SUMMARY: Ahead of today's ECB meeting core EGBs have traded sideways and

the periphery has sold off slightly.

- Bunds now trade close to unch on the day. Current yield levels: 2-year

-0.6387%, 5-year -0.585%, 10-year -0.3535%, 30-year 0.1214%.

- France OATs similarly trading in line with yesterday's close.

- BTPs have traded softer with cash yields 1-3bp higher across the curve.

- Gilts have firmed with marginal bull flattening of the curve. 

- Sell-side analysts are anticipating the ECB to increase the PEPP by EUR500bn.

Other possible options include an announcement on the reinvestment policy of

PEPP, adjustments to existing TLTROs or an increase in the tiering multiple.

Questions on the GCC ruling are likely to come up in the press conference. 

- Supply this morning came from France (OATs, E11bn) and Spain

(Bonos/Oblis/linker, E7.9bn).

- Data published this morning show a 89% Y/Y fall in UK car registrations for

May and a 19.6% Y/Y contraction in Eurozone retail sales for April.