/EGBs-GILTS CASH CLOSE: Bunds have............>

BONDS: /EGBs-GILTS CASH CLOSE: Bunds have underperformed (with the long end much

weaker) in a largely risk-on day. Stronger-than-expected PMI data for June in

the Eurozone and U.K. provided the initial impetus in the morning, and was

followed through by stronger equities. Periphery spreads have also tightened,

led by Italy. ** Closing levels:

* Germany: The 2-Yr yield is up 2.7bps at -0.659%, 5-Yr is up 2.5bps at -0.656%,

10-Yr is up 3.1bps at -0.408%, and 30-Yr is up 6.5bps at 0.075%.

* UK: The 2-Yr yield is up 0.6bps at -0.06%, 5-Yr is up 1.1bps at -0.008%, 10-Yr

is up 1.8bps at 0.211%, and 30-Yr is up 0.2bps at 0.689%.

** 10-Yr Periphery EGB Spreads:

* Italian BTPs vs Bunds down 6.3bps at 166.4bps

* Spanish bonds vs Bunds down 1.6bps at 88.4bps

* Portuguese PGBs vs Bunds down 3.6bps at 89.1bps

* Greek bonds vs Bunds down 2.2bps at 169.7bps