/EGBS-GILTS: Risk-negative trade.......>

BOND SUMMARY: /EGBS-GILTS: Risk-negative trade headlines overnight have lent a

renewed bid to core EGBs and Gilts early Friday, with German inflation up later.

- U.S. Pres Trump`s announcement of 5% tariffs on all Mexican imports has

rippled globally. EuroStoxx off 1.2%, with S&P futures off 1.0%.

- BTP 10-Yr spreads/Germany hit 2019 highs at 293.5bps; last at 291.1bps.

- Euribor and Short Stg strips bull steepening, later dates up 3.5-4.5 ticks.

- UK DMO confirmed that linker syndication will be held in the first half of

July with 2040-60 maturity; long conventional gilt sale to be held in September.

- This morning sees German May regional and national inflation, following on

from a miss in German Apr retail sales (-2% M/M vs +0.5% MNI median). 

- 10Yr Bund hit -0.201%, a whisker off record low -0.205%, while 10-Yr Gilts hit

lowest since Oct 2016 at 0.861%. Latest futures prices:

* Jun Bund futures (RX) up 34 ticks at 168.34 (L: 168.3 / H: 168.44)

* Jun BTP futures (IK) down 75 ticks at 129.41 (L: 128.99 / H: 130.02)

* Jun OAT futures (OA) up 19 ticks at 164.17 (L: 164.12 / H: 164.32)

* Sep Gilt futures (G) up 28 ticks at 129.89 (L: 129.88 / H: 130.04)