EGBs/GILTS: Gilts have been moving.....>

BOND SUMMARY: EGBs/GILTS: Gilts have been moving lower all day following last

night's Brexit extension news, while core EGBs have bounced off earlier lows but

remain under pressure Thursday.

- Jun 19 Gilt future is down 57 ticks at 127.73, with a low of 127.67.

Parliament looks headed to a long Easter recess during which MPs will consider

their Brexit positions. PM May pledged continued talks with Labour.

- Bunds dropped sharply after 1330UK time's U.S. PPI and initial jobless claims

data, which surprised with hawkish implications.

- Bund futures (RX) last down 24 ticks at 165.65 (L: 165.56 / H: 165.87).

- Cash curve bear steepened: The 2-Yr yield is up 3.4bps at 0.733%, 5-Yr up

3.7bps at 0.877%, 10-Yr up 4.6bps at 1.143%, and 30-Yr up 3.3bps at 1.664%.

- Semi-core a little weaker also. Jun OAT futures (OA) down 8 ticks at 162.52.

- Periphery instruments remain bid, led by Greece, where 10-Yr yields are at

lowest levels since 2005, with spread vs Bunds down 8.3bps at 336.2bps.

- 10-Yr BTPs 6.6bps tighter to Bunds; Spain and Portugal 4.8bps narrower each.

- Later tonight (2140CET), ECB`s Knot speaks in Washington.