EGB/GILT: European government bonds....>

BOND SUMMARY: EGB/GILT: European government bonds have remained broadly bid

through the morning alongside fresh equity losses and oil inching lower.

- Gilt yields are uniformly 2bp lower across the curve.

- Bunds opened stronger and have traded sideways through the morning session.

Current yield levels: 2-year -0.644%, 5-year -0.622%, 10-year -0.4343%, 30-year

0.011%. 

- Having similarly opened on a firm footing, OAT yields have edged lower. Cash

yields are 1-2bp lower on the day.

- Supply this morning came from Italy (BTP/CCTeu, E7.5bn), UK (bills, GBP3.5bn).

- Data published this morning showed the Italian economy contracting at a faster

paced than initially estimated during the first quarter (-5.3% Q/Q vs -4.7%).

- BTPs clawed back some of the losses from earlier with yields now 1-2bp above

yesterday's closing levels.