Gilts are the story of of a mixed......>

BOND SUMMARY: Gilts are the story of of a mixed morning in European fixed

income, weakening alongside a sharp jump in GBPUSD on no apparent news.

- This morning we get Services/Composite PMIs; Spain was a strong beat, Italy,

France and Germany up next.

- Germany sells E3bln of Bund this morning.

- Decent slate of ECB speakers, with Villeroy, Visco, Makhlouf, and de Cos all

appearing. ** Latest levels:

* Dec Bund futures (RX) up 11 ticks at 171.15 (L: 170.91 / H: 171.31)

* Germany: The 2-Yr yield is down 0.6bps at -0.639%, 5-Yr is down 1.1bps at

-0.595%, 10-Yr is down 0.7bps at -0.355%, and 30-Yr is down 0.5bps at 0.159%.

* Mar Gilt futures (G) up 15 ticks at 133.09 (L: 133.07 / H: 133.35)

* UK: The 2-Yr yield is up 0.7bps at 0.509%, 5-Yr is up 0.1bps at 0.485%, 10-Yr

is down 0.2bps at 0.668%, and 30-Yr is down 0.2bps at 1.189%.

* Dec BTP futures (IK) down 7 ticks at 140.54 (L: 140.51 / H: 140.95)

* Italy / German 10-Yr spread 2.1bps wider at 165.5bps

* Dec OAT futures (OA) up 8 ticks at 167.58 (L: 167.45 / H: 167.78)