/EGBs-GILTS CASH CLOSE: Bund yields...........>

BONDS: /EGBs-GILTS CASH CLOSE: Bund yields finished near the lows, with Gilts

slightly off them - curves bull flattening in each case. Tough to characterise

the day thematically, but risk-off for the most part (follow-through from

Monday) with Italian and Greek spreads widening, particularly the latter.

** Closing levels:

* Germany: The 2-Yr yield is down 0.5bps at -0.665%, 5-Yr is down 1.9bps at

-0.642%, 10-Yr is down 3bps at -0.447%, and 30-Yr is down 4.2bps at -0.031%.

* UK: The 2-Yr yield is down 0.1bps at -0.104%, 5-Yr is down 1.3bps at -0.067%,

10-Yr is down 3.6bps at 0.15%, and 30-Yr is down 2.1bps at 0.636%.

** 10-Yr Periphery EGB Spreads:

* Italian BTP spread up 0.5bps at 165.9bps

* Spanish bond spread down 0.6bps at 85.5bps

* Portuguese PGB spread down 0.5bps at 86.3bps

* Greek bond spread up 9.5bps at 172.9bps