/EGBs-GILTS CASH CLOSE: Impressive bull.......>

BONDS: /EGBs-GILTS CASH CLOSE: Impressive bull curve flattening (reversing most

of the early supply-led bear steepening) was the most notable feature in today's

late afternoon core FI rally.

- From a little after 1400BST, Bund and Gilt yields reversed earlier rises, with

dropping 3bps and 2bps respectively in 10-Yr instruments.

- Along the same timeframe, Italian 10-Yr spreads widened 4bps to day's widest

levels closing a shade under 240bps to Bunds. ** Closing levels:

* Germany: 2-Yr yield up 2.8bps at -0.721%, 5-Yr up 1.1bps at -0.717%, 10-Yr up

0.7bps at -0.505%, and 30-Yr down 1.4bps at -0.063%.

* UK: 2-Yr yield down 2bps at -0.014%, 5-Yr down 1.6bps at 0.075%, 10-Yr down

2bps at 0.249%, and 30-Yr down 0.2bps at 0.592%.

** 10-Yr EGB Periphery Spreads to Bunds:

* Italy / German 10-Yr spread 0.4bps wider at 239.5bps

* Spain / German 10-Yr spread 3.3bps tighter at 129.3bps

* Portugal / German 10-Yr spread 2.5bps tighter at 142.3bps

* Greece / German 10-Yr spread 1.2bps tighter at 266.9bps