EGB/GILT: European govvies have........>

BOND SUMMARY: EGB/GILT: European govvies have rallied across the board against a

backdrop of fresh equity losses and lower oil prices.

- Gilts are bid with yields 2-3bp lower and the curve marginally flatter.

- The bund curve has bull flattened with the 2s30s spread 2bp narrower.

- The longer end of the OAT curve has similarly outperformed with the

15-/30/50-year benchmark yields down 5bp on the day.

- BTP cash yields are down 3-6bp with marginal outperformance in the belly of

the curve.

- This morning's slew of UK data came in better than expectations, but still

reveals a significant contraction in economic activity in March. Moreover, given

that the UK did not fully lockdown until March 23, the hard data do not yet

reveal the true extent of the the sudden stop.

- Supply this morning came from the UK (gilt; GBP0.6bn), Germany (bund,

E0.863bn), Italy (BTPs, E9bn) and Portugal (OTs, E1.492bn)

- There is little of note on the data calendar for the rest of the day. US PPI

data for April will be published at 1330 BST.