/EGBs-GILTS SUMMARY: A weak start......>

BOND SUMMARY: /EGBs-GILTS SUMMARY: A weak start for Gilts and Bunds, with

periphery EGB spreads tighter. Equities trading higher and supply eyed.

- 10-Yr Bunds down as Germany will tap the 0% Aug-30 bund for E5bn, while

there's an Italian specialist tap for E1.75bln. UK selling GBP6bln of Gilts.

- UK May inflation numbers in line with expectations; not much market-moving

data for the rest of the day in Europe (final Eurozone CPI at 1000BST).

- ECB's Mersch appears at 1000BST; de Guindos at 1200BST. ** Latest levels:

* Sep Bund futures (RX) down 43 ticks at 174.97 (L: 174.8 / H: 175.45)

* Germany: The 2-Yr yield is up 0.5bps at -0.647%, 5-Yr is up 1.6bps at -0.621%,

10-Yr is up 5.6bps at -0.371%, and 30-Yr is up 2.8bps at 0.084%.

* Sep Gilt futures (G) down 28 ticks at 137.02 (L: 136.91 / H: 137.22)

* UK: The 2-Yr yield is up 0.3bps at -0.038%, 5-Yr is up 0.7bps at 0.009%, 10-Yr

is up 1bps at 0.217%, and 30-Yr is up 1.1bps at 0.625%.

* Sep BTP futures (IK) down 5 ticks at 142.04 (L: 141.76 / H: 142.14)

* Italy / German 10-Yr spread 4.8bps tighter at 177.6bps

* Sep OAT futures (OA) down 35 ticks at 166.24 (L: 166.13 / H: 166.56)