EGB/Gilt: It has been a quiet..........>

BOND SUMMARY: EGB/Gilt: It has been a quiet European morning session for EGBs

and gilts with little reaction to the news of the increase of US tariffs on

China.

- There has been a decent amount of data released this morning, with UK GDP most

notable. Although it was in line with expectations, consumption and investment

rose more than expected with IP and services also holding up well. Net exports

were the drag. Eurozone data was more mixed with German trade better than exp

but French and Italian IP worse than exp with Italian retail sales also

disappointing.

- Bund futures are down -0.16 today at 166.10 with 10y Bund yields up 0.9bp at

-0.39% and Schatz yields up 1.0bp at -0.623%. Most of the Euribor strip is unch

or 0.5 ticks lower. Peripheral spreads are generally tighter on the day.

- Gilt futures are down -0.16 today at 127.89 with 10y yields up 0.6bp at 1.130%

and 2y yields down -0.1bp at 0.732%. The short sterling strip is down 0.5-1

tick.