/EGBs/GILTS: European bonds are........>

BOND SUMMARY: /EGBs/GILTS: European bonds are consolidating gains following

Thursday`s surprise ECB decision, and mixed Eurozone factory order data.

- German Jan factory orders were very weak at -2.6% M/M vs MNI Median +0.5% M/M;

however, France orders produced a beat (+1.3% M/M vs flat expected).

- Jun 19 Bund future is down 6 ticks at 164.48, having traded in a range of

164.41-164.74 so far. 2-Yr yield is up 0.5bps at -0.542%, 5-Yr up 0.7bps at

-0.361%, 10-Yr down 0.1bps at 0.066%, and 30-Yr up 0.3bps at 0.733%.

- ECB's Nowotny said earlier that TLTRO details will be announced in June.

- Italian BTP spreads giving back some of Thursday`s post-ECB gains, with Jun 19

BTP future is down 14 ticks at 129.09. 10-Yr spread/Bunds up 4.2bps at 244.4bps.

- Spain, Portugal, Greece spreads 1-2bps wider as well this morning.

- Gilts are a little softer Friday, Jun 19 futures down 25 ticks at 127.21, and

a bit of bear steepening in the cash curve.

- Few Brexit developments of note ahead of Meaningful Vote 2 on Tuesday.

- Italy industrial data up at 0900GMT; beyond that all eyes on the data front

are on US nonfarm payrolls at 1330GMT.