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

BOND SUMMARY: /EGBs-GILTS: Periphery spreads are tighter while core FI is weaker

(w bear flattening in cash curves), albeit in cohppy trade.

- Moody's non-update on Italy Friday seen positive for risk.

- ECB's Schnabel interviewed in La Repubblica published earlier, put out a

defiant line on the German constitutional court decision (in line w recent

communications from the bank/European Commission).

- Main scheduled event today: next round of talks on the UK-EU future

relationship begin with a plenary session at 1500CET.

- Italy Mar industrial production at 0900BST the only noteworthy data point.

** Latest levels:

* Jun Bund futures (RX) down 37 ticks at 173.4 (L: 173.28 / H: 173.74)

* Jun Gilt futures (G) down 33 ticks at 137.36 (L: 137.24 / H: 137.51)

* Jun BTP futures (IK) down 37 ticks at 137.93 (L: 137.82 / H: 138.59)

* Italy / German 10-Yr spread 4.3bps tighter at 233.9bps