EGB/Gilt: Stronger Chinese growth......>

BOND SUMMARY: EGB/Gilt: Stronger Chinese growth has been the main driver for

markets this morning with Chinese GDP coming in 0.1pp above expectations helping

risk to rally and seeing core bond markets under pressure.

- It is a busy day for data today with UK CPI, euro area current account and

final CPI prints along with speeches from Carney, Lautenschlaeger and Villeroy.

- Supply: Germany is selling E1bln of the 2.50% Jul-44 Bund while Portugal are

in the market selling bills.

- Gilt futures are down -0.31 today at 126.57 with 10y yields up 2.8bp at 1.245%

and 2y yields up 2.5bp at 0.813%.

- Bund futures are down -0.47 today at 164.13 with 10y Bund yields up 3.0bp at

0.095% and Schatz yields up 0.6bp at -0.569%.

- BTP futures are unch today at 129.96 with 10y yields up 0.9bp at 2.601% and 2y

yields up 0.4bp at 0.490%.

- OAT futures are down -0.36 today at 160.90 with 10y yields up 2.3bp at 0.441%

and 2y yields up 0.5bp at -0.507%.

- Other peripheral spreads to Bunds are generally tighter on the day.