- Bonds are lower this morning.........>

BOND SUMMARY: - Bonds are lower this morning following better than expected

Chinese data with GDP coming in 0.1ppt higher than expected at 6.4%.

- Treasuries remain near their lows of the day but gilts and EGBs have retraced

some of their losses. Gilts partly on the back of weaker than expected CPI and

soft house price data with EGBs helped by comments from ECB's Hansson that there

is no reason to doubt a pick-up in growth in the second half of the year.

- TY1 futures are down -0-4 today at 122-22+ with 10y UST yields up 1.5bp at

2.606% and 2y yields up 0.7bp at 2.420%.

- Bund futures are down -0.35 today at 164.25 with 10y Bund yields up 2.3bp at

0.088% and Schatz yields up 0.2bp at -0.573%. Peripheral spreads are a bit

tighter on the day.

- Gilt futures are down -0.25 today at 126.63 with 10y yields up 2.4bp at 1.241%

and 2y yields up 1.4bp at 0.802%.