/EGBs-GILTS CASH CLOSE: It was a fairly.......>

BONDS: /EGBs-GILTS CASH CLOSE: It was a fairly rangebound day for EGBs until the

announcement of new 10-Yr Dec-30 BTP syndication. 10-Yr BTPs sold off sharply

and spreads widened, settling in 5bps wider of Bunds vs prior to the

announcement, with a knock-on effect on the rest of the EGB periphery.

- Bunds + Gilts weakened over the course of the afternoon but not dramatically.

The German and UK curves went in opposite directions though, flattening and

steepening respectively. ** Closing levels:

* Germany: The 2-Yr yield is unchanged at -0.653%, 5-Yr is unchanged at -0.622%,

10-Yr is down 1.3bps at -0.415%, and 30-Yr is down 1.9bps at 0.065%.

* UK: The 2-Yr yield is down 1.9bps at -0.025%, 5-Yr is down 1.3bps at 0.025%,

10-Yr is down 0.9bps at 0.222%, and 30-Yr is up 1.5bps at 0.636%.

** 10-Yr Periphery EGB Spreads:

* Italian BTPs vs Bunds up 2.7bps at 191.6bps

* Spanish bonds vs Bunds down 0.6bps at 97.3bps

* Portuguese PGBs vs Bunds up 1bps at 92.6bps

* Greek bonds vs Bunds up 0.5bps at 192.7bps