/EGBs-GILTS: For the second............>

BOND SUMMARY: /EGBs-GILTS: For the second consecutive day it's been a swift

reversal in Bunds/Gilts, rebounding back to earlier Asia-Pac levels after diving

as European/London traders came in.

- The big move has been in periphery spreads though, which continue to tighten

as yesterday's EUR500bln EU recovery package is digested.

- Italy 10-Yr/Bund spread briefly hit tightest levels since April 14 just below

206bps, but it's the other peripheries that are outperforming: Spain, Portugal,

and Greece 10-Yr spreads in 9-10bps (vs 4 for Italy).

- May German ZEW survey out at 1000BST; ECB's Lane speaks at 1500BST.

- Earlier, UK employment data for March was a little better than expected on 3M

jobs growth, though a little weak on Avg Weekly Earnings.

- UK syndicating 4.00% Jan-60 Gilt today, books open. No EGB EUR issuance.

** Latest levels:

* Jun Bund futures (RX) down 31 ticks at 172.85 (L: 172.54 / H: 173.00)

* Jun Gilt futures (G) up 17 ticks at 137.65 (L: 137.38 / H: 137.70)

* Italy / German 10-Yr spread 3.4bps tighter at 210.6bps