/EGBs-GILTS CASH CLOSE: The ECB decision......>

BONDS: /EGBs-GILTS CASH CLOSE: The ECB decision (highlighted by an increase in

the PEPP program of EUR600bln) was met favourably by periphery EGBs, with yields

+ spreads crashing to multi-month lows (10-Yr BTP/Bund at lowest since Mar 27).

- By the same token, Bunds and Gilts weakened, with bear steepening in the

German and UK curves.

- Heavy Spanish/French supply this morning largely shrugged off as a driving

factor. Closing cash levels: 

* Germany: The 2-Yr yield is up 2.6bps at -0.605%, 5-Yr is up 1.5bps at -0.562%,

10-Yr is up 3.4bps at -0.32%, and 30-Yr is up 7.3bps at 0.195%.

* UK: The 2-Yr yield is up 1.1bps at 0.005%, 5-Yr is up 1.4bps at 0.065%, 10-Yr

is up 3.2bps at 0.306%, and 30-Yr is up 2.3bps at 0.735%.

** 10-Yr Periphery EGB Spreads:

* Italian BTPs vs Bunds is down 16.7bps at 174.1bps

* Spanish bonds vs Bunds is is down 8.8bps at 87.6bps

* Portuguese PGBs vs Bunds is is down 8.2bps at 84.7bps

* Greek bonds vs Bunds is is down 15.1bps at 172.6bps