EGB/Gilt: Gilts have been on the.......>

BOND SUMMARY: EGB/Gilt: Gilts have been on the front foot this morning following

BoE's Vlieghe's dovish comments over the weekend and some poor UK data this

morning. Services and manufacturing dragged on output in November while

construction and trade were strong. Gilt futures rose to their highest levels

since last Monday while there has been a bull steepening across the curve. 2y

yields briefly touched their lowest levels since October, falling to 0.468% but

have since moved back to 0.480%.

- Bunds have followed USTs, moving lower through most of the session as risk

rallies. Peripheral spreads are largely unch although BTP spreads are marginally

wider, unwinding some of the tightening we saw on Friday with little

explanation.

- Gilt futures are up 0.36 today at 132.13 with 10y yields down -2.7bp at 0.741%

and 2y yields down -5.2bp at 0.470%.

- Bund futures are down -0.29 today at 171.06 with BTP futures down -0.35 at

143.09 and OAT futures down -0.38 at 163.57.