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/EGBs-GILTS: More volume than one......>

BOND SUMMARY
BOND SUMMARY: /EGBs-GILTS: More volume than one might have expected so far on
Ascension Day throughout much of Europe, though ranges have been tight so far.
- Gilts and Bunds a little bit stronger, periphery yields a bit wider as
equities are on the back foot.
- May flash PMIs for France and Germany each showed better- than-expected
services, with France above/Germany below on mfg.
- Eurozone out at 0900BST, UK at 0930BST.
- ECB's Panetta speaking now, hasn't said anything market-moving.
- In issuance, Spain sells Bono/Obli for up to EUR7bln, while the BTP Italia
sale moves from the retail to the institutional part of the sale. The UK sells
0.125% Aug-28 linkers and 4.25% Jun-32 Gilts, total GBP3.25bln on offer.
** Latest levels:
* Jun Bund futures (RX) up 30 ticks at 173.02 (L: 172.85 / H: 173.1)
* Jun Gilt futures (G) up 43 ticks at 138.09 (L: 137.96 / H: 138.11)
* Jun BTP futures (IK) up 2 ticks at 140.27 (L: 140.12 / H: 140.48)
* Italy / German 10-Yr spread 2.6bps wider at 212.7bps

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