Re-FILE: Morgan Stanley has....>

MONTH-END EXTENSIONS: Re-FILE: Morgan Stanley has following US and European

month-end bond index advance estimates: 

- Broad Euro Govt Bond Index extends +0.03 years, "in line with an average

August, but lower than the an average monthly extension (0.08 yrs). We see the

largest extension in the 1-5yr sector. On a country basis, Italy has the largest

extension of 0.09 yrs and its 1-5-year sector "will also see a notable extension

of 0.23 years, mainly due to a bond falling out of the index." 

- US Tsys index: "We expect an extension of about 0.10 yrs, lower than an

average August (0.14 years) but marginally higher than an average month (0.085

years) given than August is a refunding month." 

- US TIPS index: MS said it "should contract by 0.04 years, more or less in line

with the August average, but lower than an average monthly extension (0.06

years.) 

- UK Gilts index however "contract by -0.016 years, lower than average;" avg

August extension is for 0.10 yrs and an average monthly extension is 0.08 year