/EGBs-GILTS CASH CLOSE: A massive.......>

EGB SUMMARY: /EGBs-GILTS CASH CLOSE: A massive afternoon rally in equities

(Eurostoxx up 2.6% from 1300BST onward) did little to boost risk appetite in the

European FI space, with EGB periphery spreads and Bund yields remaining steady

(perhaps with an eye to the ECB meeting Thursday).

- Gilts proved an exception, weakening toward end-day, with yields touching

session highs and the curve a little steeper. Closing Levels:

* Germany: The 2-Yr yield is down 1.2bps at -0.706%, 5-Yr is down 1.7bps at

-0.671%, 10-Yr is down 2.6bps at -0.495%, and 30-Yr is down 2.5bps at -0.086%.

* UK: The 2-Yr yield is down 0.2bps at 0.052%, 5-Yr is down 0.5bps at 0.15%,

10-Yr is down 0.2bps at 0.285%, and 30-Yr is down 1.6bps at 0.625%.

* spread of 10-Yr Italian BTPs vs Bunds is up 5.4bps at 225.1bps

* spread of 10-Yr Spanish bonds vs Bunds is is down 1.7bps at 129.4bps

* spread of 10-Yr Portuguese PGBs vs Bunds is is down 3.7bps at 139.8bps

* spread of 10-Yr Greek bonds vs Bunds is is up 1.2bps at 267.9bps