/EGBs-GILTS CASH CLOSE: For the second........>

BONDS: /EGBs-GILTS CASH CLOSE: For the second straight session, periphery

spreads widened more or less steadily over the course of the day, with Bunds and

Gilts picking up steam late.

- No particular catalysts for late move, but there was strong bull flattening in

both the German and UK curves, the latter despite 2-Yr and 5-Yr Gilts quietly

hitting all-time low yields.

** Closing levels:

* Germany: The 2-Yr yield is down 1.8bps at -0.69%, 5-Yr is down 2.5bps at

-0.703%, 10-Yr is down 2.8bps at -0.468%, and 30-Yr is down 4.3bps at -0.032%.

* UK: The 2-Yr yield is down 0.3bps at -0.076%, 5-Yr is down 2.4bps at -0.049%,

10-Yr is down 3.5bps at 0.154%, and 30-Yr is down 5.3bps at 0.59%.

** 10-Yr Periphery EGB Spreads:

* Italian BTPs vs Bunds up 6.6bps at 177.3bps

* Spanish bonds vs Bunds up 1.7bps at 92.6bps

* Portuguese PGBs vs Bunds up 3.5bps at 93.3bps

* Greek bonds vs Bunds up 6.2bps at 177.2bps