/EGB SUMMARY: Reflecting France's hardline....>

GILTS: /EGB SUMMARY: Reflecting France's hardline position in Brexit

negotiations, Finance Minister Bruno Le Maire has stated that the sooner the UK

leaves the EU the better and that the referendum result to leave the bloc should

be respected.

- The April PMI for France painted a mixed picture. While the manufacturing

series came in at a four-month low, the services print is running at a

five-month high. Meanwhile, the German manufacturing reading deteriorated again,

pushing further into contractionary territory. 

- Gilts yields are ~1bp lower from yesterday. Current yield levels: 2-year

0.775%, 5-year 0.934%, 10-year 1.222%, 30-year 1.732%. The Jun-19 gilt future

trades at 126.85, 18 ticks above yesterday's close.

- Core EGBs are trading a touch stronger. The Jun 19 Bund future trades at

164.76, near the top of the morning range. 

- The French OAT curve has flattened on the back of the long-end outperforming.

The 2s30s spread trades at 195.8 and 3.0bp narrower on the day.