/EGBs-GILTS: Periphery spreads are.....>

BOND SUMMARY: /EGBs-GILTS: Periphery spreads are unsurprisingly wider following

yesterday's EU videoconference deadlock, and overnight risk-off has boosted core

FI/weakened equities. That said, Bunds and Gilts are off best levels and stocks

are off the lows in early London trading.

- UK retail sales came in weak (-5.1%, 0.1pp below consensus). BOE announcement

for next week's asset purchases worth watching at midday (see 0745BST bullet).

- Italy rounds out week's issuance, selling 0.40% May-30 BTPEi and Nov-21 CTZ.

- German IFO the next data point of note at 0900BST.

- Latest levels:

* Jun Bund futures (RX) up 45 ticks at 172.55 (L: 172.27 / H: 172.87)

* Jun Gilt futures (G) up 17 ticks at 137.2 (L: 137.19 / H: 137.45)

* spread of 10-Yr Italian BTPs vs Bunds is up 12.4bps at 253.4bps

* spread of 10-Yr Spanish bonds vs Bunds is is up 6.7bps at 154bps

* spread of 10-Yr Portuguese PGBs vs Bunds is is up 6.6bps at 168.6bps

* spread of 10-Yr Greek bonds vs Bunds is is up 9.6bps at 287.8bps