Gilts continue to move higher led by...>

BOND SUMMARY: Gilts continue to move higher led by the Pound amid modest

risk-off, as the UK Parliament is scheduled to return at 1130BST.

- Immediate attention on ECB's Coeure speaking at 0900BST.

- Relative dearth of European data this morning.

- EGB supply includes Jun-21 CTZ and 2.55% Sep-41 BTPEi from Italy for a

combined E1.25-2.00bln, while Germany sells E3bln of 0.00% Aug-29 Bund.

** Latest levels:

* Dec Bund futures (RX) up 11 ticks at 174.84 (L: 174.61 / H: 174.9)

* Germany: The 2-Yr yield is down 0.5bps at -0.739%, 5-Yr is down 0.8bps at

-0.768%, 10-Yr is down 1.4bps at -0.614%, and 30-Yr is down 1.9bps at -0.138%.

* Dec Gilt futures (G) up 24 ticks at 134.01 (L: 133.73 / H: 134.05)

* UK: The 2-Yr yield is down 1.5bps at 0.442%, 5-Yr is down 1.7bps at 0.36%,

10-Yr is down 1.9bps at 0.509%, and 30-Yr is down 1.5bps at 0.938%.

* Dec BTP futures (IK) up 6 ticks at 145.75 (L: 145.44 / H: 145.8)

* Italy / German 10-Yr spread 1bps wider at 144.3bps

* Dec OAT futures (OA) up 18 ticks at 170.82 (L: 170.54 / H: 170.86)