/EGBs-GILTS CASH CLOSE: A positive day for....>

BONDS: /EGBs-GILTS CASH CLOSE: A positive day for govvies across the board

Monday as the extended EU Summit awaits a conclusion - the latest word is that

leaders are set to reconvene around now, with EUR390bln appearing to be the size

of the grants in the recovery plan (vs EUR500bln in the Commission proposal).

- Some modest bull flattening in the German curve, while Gilts have been a bit

mixed. Periphery spreads have narrowed impressively, led by Italy (10-Yrs/Bunds

at lowest since early March). ** Closing levels:

* Germany: The 2-Yr yield is down 0.6bps at -0.67%, 5-Yr is down 1.2bps at

-0.656%, 10-Yr is down 1.3bps at -0.46%, and 30-Yr is down 2.1bps at -0.024%.

* UK: The 2-Yr yield is down 0.5bps at -0.096%, 5-Yr is down 1.3bps at -0.078%,

10-Yr is down 1.2bps at 0.151%, and 30-Yr is down 0.6bps at 0.672%.

** 10-Yr Periphery EGB Spreads:

* Italian BTP spread down 5.3bps at 156.4bps

* Spanish bond spread down 4.1bps at 81.6bps

* Portuguese PGB spread down 4.1bps at 82.6bps

* Greek bond spread down 5bps at 159.7bps