European govies have broadly traded....>

BOND SUMMARY: European govies have broadly traded firmer this morning alongside

a resurgent dollar, while equities are struggling to make headway.

- Bunds have been mildly bid with price action contained. Yields are close to

unch on the day across much of the curve.

- OATs have marginally outperformed with cash yields up to 2bp lower at the

longer end.

- BTPs had little problem soaking up today's supply with yields now 1-4bp lower.

- Final estimates for the first quarter show the UK economy contracting at a

faster pace than initially expected (-2.2% Q/Q vs -2.0% previously. 

- Elsewhere preliminary data for June showed a sharp slowdown in French CPI

(0.1% Y/Y vs 0.5% survey), while Italy inched furhter into deflationary

territory (-0.4% Y/Y vs -0.3% survey).

- EGB supply this morning came from Italy (BTPs/CCTeu, E7.75bn) and Germany

(Bunds, E2.50bn).

- The next stop will be the MNI Chicago PMI print for June which will be

published this afternoon.