European government bonds broadly......>

BOND SUMMARY: European government bonds broadly trade firmer this morning

following yesterday's bear steepening theme in core markets. 

- Gilts opened higher but have given back of the earlier gains. Cash yields are

now 1-2bp lower on the day across the curve.

- Bunds are a touch softer with yields now close to unch on the day.

- OATs rallied early into the session but reversed by mid-morning. Similar to

gilts, cash yield are now 1-2bp lower.

- There has been a more emphatic rally in BTPs, particularly at the short end

which has outperformed. The 2-year benchmark yield is down 6bp.

- Supply this morning came from the UK (gilts, GBP3,0bn), Germany (linker,

E0.36bn), Austria (RAGBs, E1.38bn), Netherlands (DTC, E1,9bn), Belgium (TCs,

E2.0bn) and the ESM (bills, E2.5bn).

- Data has been thin on the ground with the April money supply and consumer

credit data for the UK revealing very little about the current health of the

economy.