/EGBs-GILTS: Core EGBs are looking.....>

BOND SUMMARY: /EGBs-GILTS: Core EGBs are looking heavy to start the week, but

Gilts are flying on BOE Vlieghe's comments that he could support an

interest-rate cut if domestic economy shows no signs of recovery.

- Main data focus this morning is UK Nov GDP at 0930GMT, particularly given

Vlieghe`s comments (and those previously by Tenreyro and Carney).

- Big steepening in the Gilt curve as short-end outperforms: the 2-Yr yield is

down 5.5bps at 0.472%, 5-Yr is down 4.7bps at 0.512%, 10-Yr is down 3.2bps at

0.737%, and 30-Yr is down 1.5bps at 1.244%.

- Busy EUR issuance: incl Mexico, Unicredit, Sabadell, National Grid.

- Periphery EGBs spreads a wider, led by Italy (10-Yr +3.6bps at 155.6bps)

- ** Latest levels:

* Mar Bund futures (RX) down 9 ticks at 171.26 (L: 171.19 / H: 171.43)

* Germany: The 2-Yr yield is up 0.7bps at -0.593%, 5-Yr is up 0.3bps at -0.502%,

10-Yr is up 0.8bps at -0.191%, and 30-Yr is up 1.5bps at 0.327%.

* Mar OAT futures (OA) down 16 ticks at 163.79 (L: 163.71 / H: 163.93)