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

BOND SUMMARY: /EGBs-GILTS: For the third consecutive session, Bunds have bounced

back from a sharp drop around 0800BST, with Gilts also picking up a bid at the

open. Periphery EGBs a little soft in the early going.

- Attention fully on a counter-proposal to the Franco-German EUR500bln recovery

plan to be presented by Austria, Denmark, Sweden, and the Netherlands some time

after 1500CET (per BBG).

- In Issuance, France and Germany sell a combined EUR14bln today, with BTP

Italia sales continuing after EUR8.8bln in retail orders so far.

- BoE speakers (Bailey et al) speak at Treasury committee at 1430BST.

- UK inflation came in a little on the soft side in April, not much else in the

realm of European data today. ** Latest levels:

* Jun Bund futures (RX) down 8 ticks at 172.62 (L: 172.51 / H: 172.87)

* Jun Gilt futures (G) up 11 ticks at 137.67 (L: 137.63 / H: 137.82)

* Jun BTP futures (IK) down 45 ticks at 139.75 (L: 139.75 / H: 140.23)

* Italy / German 10-Yr spread 3.5bps wider at 213.4bps