/EGBs-GILTS CASH CLOSE: Curves steepened......>

BONDS: /EGBs-GILTS CASH CLOSE: Curves steepened across the board in EGBs/Gilts,

in a combination of risk appetite taking a bite out of the long end, and rising

supply (incl France 20-Yr syndication mandate announcement).

- 10-Yr BTP spreads crossed the 200bps mark for the first time since mid-April,

outperforming the rest of the periphery (Greece close behind).

- Closing levels:

* Germany: The 2-Yr yield is up 3.7bps at -0.641%, 5-Yr is up 5.8bps at -0.62%,

10-Yr is up 6.5bps at -0.429%, and 30-Yr is up 6.3bps at 0.014%.

* UK: The 2-Yr yield is up 3.4bps at -0.017%, 5-Yr is up 3.7bps at 0.019%, 10-Yr

is up 4.1bps at 0.215%, and 30-Yr is up 5.6bps at 0.641%.

** 10-Yr Periphery EGB Spreads:

* Italian BTPs vs Bunds down 9bps at 197.9bps

* Spanish bonds vs Bunds down 5.1bps at 105.5bps

* Portuguese PGBs vs Bunds down 8.5bps at 111.6bps

* Greek bonds vs Bunds down 8.8bps at 209.1bps