/EGBs-GILTS: Bunds have outperformed...>

BOND SUMMARY: /EGBs-GILTS: Bunds have outperformed Gilts in the early going

though off best levels, with periphery EGB spreads a little tighter.

- Equities on the back foot, retracing Thurs' late US rally.

- A few ECB speakers on the wires. Not much new from Lagarde; Rehn saying

'better safe than sorry' re withdrawal of stimulus (citing the 2011 rate hike),

and that the danger of deflation has re-emerged.

- In data, French consumer confidence was a little better than expected, while

Spanish May retail sales were on the weak side (though seas. adj #s in line).

- Not much else on the calendar, Italian Jun confidence data at 1000BST. 

** Latest levels:

* Sep Bund futures (RX) up 1 ticks at 176.56 (L: 176.32 / H: 176.7)

* Sep Gilt futures (G) up 3 ticks at 137.72 (L: 137.67 / H: 137.82)

* Sep BTP futures (IK) up 20 ticks at 143.41 (L: 143.27 / H: 143.58)

* Sep OAT futures (OA) down 2 ticks at 167.6 (L: 167.55 / H: 167.8)

* Italy / German 10-Yr spread 1.9bps tighter at 175.4bps