/EGBs-GILTS CASH CLOSE: Risk appetite.........>

BONDS: /EGBs-GILTS CASH CLOSE: Risk appetite diminished over the course of the

European afternoon after soaring in the morning upon news that the European

Commission's stimulus proposal would hit EUR750bln vs EUR500bln that had been

previously mooted. Equities came off the highs and periphery spreads came off

the lows, with various EU member states expressing discomfort with the size and

funding of the package. ** Closing levels:

* Germany: The 2-Yr yield is up 0.7bps at -0.634%, 5-Yr is up 1.4bps at -0.606%,

10-Yr is up 1.5bps at -0.414%, and 30-Yr is up 1.4bps at 0.028%.

* UK: The 2-Yr yield is down 0.6bps at -0.023%, 5-Yr is down 1.7bps at 0.002%,

10-Yr is down 2.2bps at 0.193%, and 30-Yr is down 2.5bps at 0.616%.

10-Yr Periphery EGB Spreads:

* Italian BTPs vs Bunds is down 6.3bps at 191.6bps

* Spanish bonds vs Bunds is is up 0.5bps at 106bps

* Portuguese PGBs vs Bunds is is down 7bps at 104.6bps

* Greek bonds vs Bunds is is down 9.4bps at 199.7bps