/EGBs-GILTS CASH CLOSE: Gilt and Bund.........>

BONDS: /EGBs-GILTS CASH CLOSE: Gilt and Bund yields ground higher for most of

the session, despite muted trade in the morning, alongside the EUREX outage

reducing activity with no futures trading for more than two hours. Bunds

underperformed, while Gilts saw weak auctions this morning; both saw the 10-Yr

segment underperform.

- Periphery spreads tightened alongside; Portugal's 15-Yr syndication saw record

demand, with over EUR41bln in orders for a EUR4bln sale. ** Closing levels:

* Germany: The 2-Yr yield is up 3.1bps at -0.656%, 5-Yr is up 5.6bps at -0.641%,

10-Yr is up 5.9bps at -0.395%, and 30-Yr is up 5.3bps at 0.058%.

* UK: The 2-Yr yield is up 1.5bps at -0.069%, 5-Yr is up 3bps at -0.023%, 10-Yr

is up 3.9bps at 0.211%, and 30-Yr is up 3.1bps at 0.674%.

** 10-Yr Periphery EGB Spreads:

* Italian BTPs vs Bunds down 4.6bps at 166.6bps

* Spanish bonds vs Bunds down 2.4bps at 89.7bps

* Portuguese PGBs vs Bunds down 6.2bps at 86.8bps

* Greek bonds vs Bunds down 9.4bps at 157.4bps