EGB/GILTs: Core EGB curves have bull...>

BOND SUMMARY: EGB/GILTs: Core EGB curves have bull flattened this morning.

- Germany cash yield are broadly 1-2bp lower. Current yield levels: 2-year

-0.617%, 5-year -0.522%, 10-year -0.250%, 30-year 0.281%.

- This morning's BTP buyback only temporarily derailed selling pressure from

earlier in the session. Yields are now 3-5bp higher on the day.

- The list of UK MPs standing down ahead of the next election as a result of

disagreements with party leadership or personal scandal continues to grow.

Labour's Gideon Bull and the Conservative's Nick Conrad are the latest to leave.

- The Dec-19 gilt future trades at 131.12, down 13 ticks from Thursday's close

and 7 ticks off the day's low; L-H: 131.05-131.29.

- Gilts have rallied with yields 0-2bps lower on the day. Cash yields (Last / 1d

chg / L..H): 2Y (0.5334% / -0.5bp / 0.5277%...0.5399%); 5Y (0.5206% / -0.9bp /

0.5152%...0.5279%); 10Y (0.7736% / -1.7bp / 0.7673%...0.7799%); 30Y (1.293% /

-2.2bp / 1.2879%...1.3015%)

- Short sterling futures have broadly sold off with greens underperforming: W

(trades mixed); R (+ 1.5 tick); G (- 1.5/2.0 ticks); B (- 1.5/2.0 ticks)