/EGBs-GILTS CASH CLOSE: Above-expected........>

BONDS: /EGBs-GILTS CASH CLOSE: Above-expected inflation data in Spain and

Germany, followed by equities clawing back early losses, were almost completely

brushed aside as core FI strengthened over the course of the day.

- Gilts easily outperformed Bunds, with the latter curve bear steepening on the

day (though off steepest levels seen mid-afternoon). Periphery spreads were

little changed on the session.

** Closing levels:

* Germany: The 2-Yr yield is up 1.1bps at -0.691%, 5-Yr is up 1.1bps at -0.703%,

10-Yr is up 1.2bps at -0.47%, and 30-Yr is up 2bps at -0.021%.

* UK: The 2-Yr yield is down 1.4bps at -0.084%, 5-Yr is down 1.2bps at -0.05%,

10-Yr is down 0.9bps at 0.163%, and 30-Yr is down 1.3bps at 0.616%.

** 10-Yr Periphery EGB Spreads:

* Italian BTPs vs Bunds down 0.6bps at 176.8bps

* Spanish bonds vs Bunds unchanged at 94bps

* Portuguese PGBs vs Bunds up 0.5bps at 94.5bps

* Greek bonds vs Bunds down 2.3bps at 173.3bps