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EGBs/GILTS: Core/Semi-Core.............>

BOND SUMMARY
BOND SUMMARY: EGBs/GILTS: Core/Semi-Core EGBs/Gilts have recovered from steep
initial losses following U.S. GDP, while peripheries are steady Friday.
- Bunds and Gilts dropped sharply at 1330BST on stronger-than-expected Q1 GDP
headline out of the States, but rebounded upon consideration of underlying data.
- Could be a key weekend for periphery EGBs: tonight sees Italy amid a slew of
other European ratings reviews, and Spain holds elections Sunday.
- Spain and Italy rallying though: 10-Yr BTPs vs Bunds in 5.2bps at 264.7bps
(had pushed above 270bps earlier); Spain in 3.2bps. Portugal 2.9bps tighter.
- U.K. gov't says is set to continue talks with opposition Labour next week.
- Some bull flattening in rate futures strips; Short-Sterling up 3.0-3.5 ticks
in Greens and Blues, while Euribor is flat out to Blues/Golds (+1.0/1.5).
- Latest futures prices:
* Jun Bund futures (RX) up 10 ticks at 165.79 (L: 165.55 / H: 165.92)
* Jun BTP futures (IK) up 60 ticks at 129.8 (L: 129.14 / H: 129.85)
* Jun OAT futures (OA) up 18 ticks at 162.16 (L: 161.92 / H: 162.23)
* Jun Gilt futures (G) up 22 ticks at 127.84 (L: 127.48 / H: 127.91)

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