EGBs have continued to see follow.......>

EGB SUMMARY: EGBs have continued to see follow through from yesterday's

Merkel-Macron announcement that they support a EUR500bln recovery fund for the

Eurozone.

- It remains unclear whether the Franco-German agreement will be enough for the

Netherlands and Austria to be on board but peripheral spreads have continued to

tighten today. Cypriot, Greek, Spanish and Portuguese spreads have seen the

biggest tightening.

- The moves tighter have been in contrast to those seen in European equities

today, which have seen falls across the Eurozone. ** Latest levels:

* Jun Bund futures (RX) down 14 ticks at 173.02 (L: 172.54 / H: 173.11)

* Germany: The 2-Yr yield is down 1bps at -0.699%, 5-Yr is down 1.5bps at

-0.687%, 10-Yr is down 1.8bps at -0.485%, and 30-Yr is down 2.3bps at -0.041%.

* Jun BTP futures (IK) up 128 ticks at 140.13 (L: 139.72 / H: 140.82)

* Italy / German 10-Yr spread 3.1bps tighter at 210.9bps

* Jun OAT futures (OA) up 39 ticks at 167.75 (L: 167.31 / H: 167.83)