Sovereign bonds trade mixed this.......>

BOND SUMMARY: Sovereign bonds trade mixed this morning alongside a tentative

stabilisation in equities.

- USTs have sold off slightly albeit with cash yields within 2bp of yesterday's

closing levels.

- Gilts continue to sell off in the wake of yesterday's decision from the BoE to

slow the rate of purchases. This morning's better than expected retail sales

print for May (Ex auto: 10.2% M/M vs 4.1% survey) triggered further selling.

Elsewhere, public sector finance data show the UK public debt breaching 100% of

GDP for the first time since 1963. The Sep-20 gilt future trades at 136.73, in

the middle of the day's range.

- Bunds and OATs sold off early into the session, but have since pared losses

and now trade near yesterday's close.

- The longer end of the BTP curve has rallied with 15-/30/50-year benchmark

yields 2bp lower on the day.

- The data calendar is light for the rest of the day with Canadian retail sales

data for April being the only release of note.