EGBs/GILTs: Gilt yields have...........>

BOND SUMMARY: EGBs/GILTs: Gilt yields have continued to grind lower and extend

the gains made over the previous three sessions as market expectations for the

BoE policy rate path have turned more dovish. Current yield levels: 2-year

0.474%, 5-year 0.509%, 10-year 0.732%, 30-year 1.244%.

- The European data calendar has been light this morning and headlines have been

thin on the ground. 

- EGBs curves have broadly flattened on the back of the long-end rally.

- The 30-year bund yield has traded down 2bps, with the 2s30s spread narrowing

2bp.

- The French OAT curve has similarly flattened with 2s30s now 3bp narrower on

the day.

- Italian BTP's trade close to unch and the curve is flat. Current yield levels:

2-year -0.038%, 5-year 0.682%, 10-year 1.374%, 30-year 2.442%.