/EGBs-GILTS: With risk appetite........>

BOND SUMMARY: /EGBs-GILTS: With risk appetite returning overnight, Bunds and

Gilts are weaker in early trading (though well off lows), with peripheries

trading tighter (Italy outperforming after lagging Mon) as equities rally.

- No EGB auctions. UK sells GBP5bln of Gilts: 1.50% Jul-26 and 4.75% Dec-30.

- Another light day of data, German Jun ZEW survey at 1000BST. Earlier, UK

jobless rate came in unchanged at 3.9% in Apr, below forecasts (BBG: 4.6%).

- ECB's Visco speaks at 1500BST. ** Latest levels:

* Sep Bund futures (RX) down 28 ticks at 175.24 (L: 174.9 / H: 175.32)

* Germany: The 2-Yr yield is up 1bps at -0.649%, 5-Yr is up 1.4bps at -0.637%,

10-Yr is up 2.2bps at -0.424%, and 30-Yr is up 3.2bps at 0.07%.

* Sep Gilt futures (G) down 20 ticks at 136.93 (L: 136.8 / H: 136.96)

* UK: The 2-Yr yield is up 1.5bps at -0.022%, 5-Yr is up 1.6bps at 0.02%, 10-Yr

is up 1.9bps at 0.224%, and 30-Yr is up 2bps at 0.622%.

* Sep BTP futures (IK) up 28 ticks at 142.01 (L: 141.6 / H: 142.06)

* Italy / German 10-Yr spread 7.1bps tighter at 183.3bps

* Sep OAT futures (OA) down 6 ticks at 166.36 (L: 165.98 / H: 166.41)