EGB/GILT: Gilts have sold off this.....>

BOND SUMMARY: EGB/GILT: Gilts have sold off this morning while EGBs have

generally lacked direction. Equities appear to have secured a firmer footing

following yesterday's sell-off, while oil has similarly stabilised.

- Supply this morning came form the UK (bills, GBP3.5bn).

- Data published earlier in the session showed the UK economy contracting at a

faster than expected rate in April. Monthly GDP for that month fell 20.4% M/M vs

-18.7% survey. 

- Gilt cash yield are 2-3bp higher with the curve trading close to flat.

- Bunds are mixed and trade near yesterday's close. Current yield levels: 2-year

-0.6600%, 5-year -0.6384%, 10-year -0.4181%, 30-year 0.059%.

- French and Spanish CPI data for April were marginally better than expected.

- OATs have firmed slightly, but price action has been contained.

- BTPs have rallied with yields now broadly 2bp lower on the day.