/EGBs-GILTS CASH CLOSE: Bull steepening was...>

BONDS: /EGBs-GILTS CASH CLOSE: Bull steepening was the order of the day in the

German curve, with the short end strongly outperforming. Periphery EGBs gained

over the course of the afternoon, perhaps inconclusive news re the European

Council meeting today is good news. ** Closing levels:

* Germany: The 2-Yr yield is down 1.8bps at -0.669%, 5-Yr is down 1.4bps at

-0.652%, 10-Yr is down 0.8bps at -0.415%, and 30-Yr is down 0.1bps at 0.019%.

* UK: The 2-Yr yield is down 0.6bps at -0.041%, 5-Yr is up 0.2bps at 0.011%,

10-Yr is up 1bps at 0.238%, and 30-Yr is up 3.4bps at 0.713%.

** 10-Yr Periphery EGB Spreads:

* Italian BTPs vs Bunds down 1.4bps at 177.2bps

* Spanish bonds vs Bunds down 1.5bps at 90.8bps

* Portuguese PGBs vs Bunds up 2.3bps at 92.4bps

* Greek bonds vs Bunds up 1.7bps at 170.2bps