EGBs/GILTS: EGBs and Gilts are.........>

BOND SUMMARY: EGBs/GILTS: EGBs and Gilts are trading weaker early Tuesday as

markets return from a long holiday weekend.

- ECB`s Coeure said in an interview Tuesday with Frankfurter Allgemeine Zeitung

that he does not `see the monetary policy argument for tiering`, but that

negative interest rate policy`s usefulness should be revisited `regularly`.

- Pressure building on UK PM May with headlines over the weekend suggesting

Conservative Brexiteers increasingly keen to oust her ahead of EU parliamentary

elections; regardless, Gilt yields higher, 10-Yr weakest (up 2.4bps at 1.221%).

- Greece outperforming periphery EGBs following Monday`s request to repay IMF

loans early; 10-Yr 2.8bps tighter to Bunds. Italy is 1.2bps wider. 

- Thin on data today; mainly Eurozone consumer confidence out at 1500BST.

- Latest futures prices:

* Jun Bund futures (RX) down 38 ticks at 164.84 (L: 164.82 / H: 165.13)

* Jun BTP futures (IK) down 45 ticks at 129.7 (L: 129.54 / H: 130.11)

* Jun OAT futures (OA) down 42 ticks at 161.6 (L: 161.58 / H: 161.91)

* Jun Gilt futures (G) down 23 ticks at 126.91 (L: 126.87 / H: 127.05)