EGBs/GILTs: UK CPI data for January....>

BOND SUMMARY: EGBs/GILTs: UK CPI data for January surprised higher, with the

headline print coming in at 1.8% Y/Y vs 1.6% survey and up from 1.3% the

previous month. Elsewhere, eurozone construction output dropped sharply in

December (-3.7% Y/Y from 1.4% in November). 

- UK PM Boris Johnson is facing increased criticism from his own ministers over

the appointment of Dominic Cummings, who has proven a divisive figure within

Downing Street. The recent departure of a controversial advisor - Andrew Sabisky

- has heightened concerns about Cummings' influence on the PM.

- Gilts have firmed today, with yields ~1bp lower on the day. Current yield

levels: 2-year 0.513%, 5-year 0.4629%, 10-year 0.5967%, 30-year 1.087%.

- The bund curve is slightly flatter with the 2s10s and 2s30s spread 1bp

narrower.

- The longer-end of the French OAT curve has slightly outperformed the broader

rally. 

- BTPs have also traded firmer, albeit with price action in a relatively

contained range.