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Morgan Stanley have............>

MONTH-END EXTENSIONS
MONTH-END EXTENSIONS: Morgan Stanley have published their July Index Extension
expectations:
- For the broad euro gov't index, they see an extension of +0.08 (vs avg July of
+0.13 and avg month +0.08).
- They expect 1y+ gilt index to contract, -0.09 (vs avg July of +0.09 and avg
month +0.08).
- They see the following countries as seeing the highest extensions: Netherlands
+0.37, Spain +0.19 (w bonds falling out of the index), same as Portugal (+0.19,
mainly due to new EUR4bln 15-Yr syndication).
- For linkers, MS sees +0.16 in eurozone, but contractions in UKTis: -0.016 in
UKTiY1yr+, with UKTi5Y+ -0.025 (vs positive extensions as the norm).

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