EGB/GILT: It's has been a pretty.......>

BOND SUMMARY: EGB/GILT: It's has been a pretty choppy early morning session for

EGBs and Gilts. Volumes have been on the lower side compared to averages.

Bunds started the session better bid, helping BTP and Gilt higher initially, but

Govies stayed within wider ranges.

Bunds saw emergence of selling interest following better Risk On flow going into

Equities, but more on talks that Germany will fully abolish solidarity charges

for most taxpayers, a move seen as equivalent to a tax break of 0.2% of GDP.

This has been talked about before and Bund are back trading in the middle of

today's range.

BTPs: are positive on the day, which is somewhat still a little puzzling

following uncertainty in Italian Politic. Focus here turns to President Sergio

Mattarella starting his meeting at 15.00BST, to see whether there is a will to

form a new government.

Gilts; Have stayed better bid, gaining support from EGB's but also better GBP

selling in early trading. Gilts, like for Bund are sitting at mid range.