It`s been a volatile day once again,...>

BOND SUMMARY: It`s been a volatile day once again, this time triggered by a

surprise 50bps rate cut by the Bank of England, with the UK budget up later.

- Gilt futures have weakened since an initial knee-jerk jump at the open, with

the curve steepening as expectations significant fiscal stimulus. Generally

speaking the coordinated fiscal-monetary action seen as `sufficient` for the

time being by markets.

- BBG sources piece saying Lagarde told European leaders yesterday that without

coordinated action Europe would see a 2008-style situation has upped the ante

even further for Thursday`s ECB decision.

- Big drop in EGB periphery spreads as well (10-Yr BTP/Bund 10.5bps tighter).

- Only data of note left today is US inflation data, no scheduled central bank

speeches of note for the rest of the day. Latest levels:

* Jun Bund futures (RX) down 72 ticks at 176.87 (L: 176.55 / H: 177.91)

* Jun Gilt futures (G) down 74 ticks at 137.21 (L: 136.82 / H: 137.57)

* Jun BTP futures (IK) up 142 ticks at 144.02 (L: 142.74 / H: 144.88)

* Jun 10-Yr futures (TY) up 8.5/32 at 137-28.5 (L: 137-07 / H: 138-19)