/EGBs-GILTS CASH CLOSE: Monday saw a rally....>

BONDS: /EGBs-GILTS CASH CLOSE: Monday saw a rally across the board for core FI

and Italian spreads alike, with no clear catalyst though some lingering risk-off

over the weekend has been cited.

- Most interesting move on the day was Gilt curve steepening, 10s30s hitting

50bp for the first time since March 20 after BoE's Bailey in a BBG Op-Ed said

the Bank should begin to unwind QE before starting to hike rates.

- Italy outperforming, Greece spreads wider. ** Closing levels:

* Germany: The 2-Yr yield is down 1.7bps at -0.686%, 5-Yr is down 2.9bps at

-0.681%, 10-Yr is down 2.4bps at -0.439%, and 30-Yr is down 0.9bps at 0.01%.

* UK: The 2-Yr yield is down 2.5bps at -0.066%, 5-Yr is down 3bps at -0.019%,

10-Yr is down 4.5bps at 0.193%, and 30-Yr is down 2.6bps at 0.687%.

** 10-Yr Periphery EGB Spreads:

* Italian BTPs vs Bunds down 4.5bps at 172.7bps

* Spanish bonds vs Bunds down 0.9bps at 89.9bps

* Portuguese PGBs vs Bunds up 0.2bps at 92.6bps

* Greek bonds vs Bunds up 1.6bps at 171.8bps