/EGBs-GILTS CASH CLOSE: Even a historic EU....>

BONDS: /EGBs-GILTS CASH CLOSE: Even a historic EU fiscal deal and equities

touching multi-month highs (and fully retracing gains) could not provide

decisive direction to the space. Bunds traded within a 2-3bps range most of the

day, while a poor Gilt auction in the morning saw only a limited and temporary

backup in yields. 5-Yr Gilts yields hit fresh all-time lows in -ve territory.

- Periphery EGB spreads came off post-EU summit euphoric tight levels, but still

narrower on the session. ** Closing levels:

* Germany: The 2-Yr yield is unchanged at -0.67%, 5-Yr is down 0.1bps at

-0.657%, 10-Yr is unchanged at -0.46%, and 30-Yr is up 0.1bps at -0.023%.

* UK: The 2-Yr yield is down 1.1bps at -0.107%, 5-Yr is down 2.1bps at -0.099%,

10-Yr is down 1.5bps at 0.136%, and 30-Yr is down 1.9bps at 0.653%.

** 10-Yr Periphery EGB Spreads:

* Italian BTP spread down 1bps at 155.4bps

* Spanish bond spread unchanged at 81.6bps

* Portuguese PGB spread down 0.5bps at 82.1bps

* Greek bond spread down 0.7bps at 159bps