EGB/GILT: The flurry of activity.......>

BOND SUMMARY: EGB/GILT: The flurry of activity early in the morning around

comments from the BoE's Ramsden, coupled with China's decision to institute a

new security law in Hong Kong, has now died down somewhat.

- Bunds initially opened higher but have traded weaker through the session.

Current yield levels: 2-year -0.6946%, 5-year -0.6905%, 10-year -0.5028%,

30-year -0.0667%.

- BTPs have marginally outperformed with cash yields up to 2bp lower on the day.

- UK retail sales for April ex auto fuel came in broadly in line and showing a

hefty 18% Y/Y contraction. This morning's comments from Deputy BoE Governor Dave

Ramsden on the need to have an open mind on negative rates adds to the sense of

a softening of resistance to such a move after Governor Bailey recently

suggested it was 'foolish' it ignore the possibility.

- Gilts started the session on a firmer footing, but gradually gave up early

gains. Cash yields are now marginally below yesterday's close.