/EGBs-GILTS CASH CLOSE: Bund and Gilt.........>

BONDS: /EGBs-GILTS CASH CLOSE: Bund and Gilt yields headed lower on the day

after a sharp rise post-US payrolls data, though the German curve flattened

anew. The rally was particularly impressive given equity strength throughout the

day.

- Peripheries continued to rally, with losses since March now erased for the

most part. Notably, large French and Spanish supply was absorbed fairly easily

this morning, in a day thin on European data/events. ** Closing Levels: 

* Germany: The 2-Yr yield is down 2.4bps at -0.68%, 5-Yr is down 3.4bps at

-0.675%, 10-Yr is down 3.3bps at -0.428%, and 30-Yr is down 2.8bps at 0.03%.

* UK: The 2-Yr yield is down 2.3bps at -0.092%, 5-Yr is down 2.7bps at -0.05%,

10-Yr is down 2.5bps at 0.186%, and 30-Yr is down 2.4bps at 0.65%.

** 10-Yr Periphery EGB Spreads:

* Italian BTPs vs Bunds down 2.7bps at 163.9bps

* Spanish bonds vs Bunds down 1.7bps at 88bps

* Portuguese PGBs vs Bunds unchanged at 86.8bps

* Greek bonds vs Bunds up 3.2bps at 160.6bps