Bund are extending gains and testing the......>

BONDS: Bund are extending gains and testing the figure here, with a small unwind

in Equities. Further gains should still stay limited ahead of the German Auction

at 10.30BST (into the bidding deadline), when Germany Sells EUR 4 Bln of 0%

2030.

**Still worth remembering that we have Large Month End for EU and US, so Bund

and Tnotes should remain underpinned and better bid post supplies.

**Posted yesterday: BARCAP: Bloomberg US month-end index

-US Tsys      +0.13yr (decent/large) 

-Pan Euro Agg +0.18yr (large) 

-Sterling Agg +0.01yr (tiny, non event).

Some of the Month End gist of potential re-balancing out of Equities back into

govies could make some sense. Regardless, there's decent Month End for US and EU

Govies.