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Date: Monday 21 Jul 2008

LONDON (ShareCast) - European government bonds were lower as equities moved ahead on a quiet day.

With economic news thin on the ground, bond traders looked towards equities for direction, which posted modest gains.

Rightmove said house prices fell by more than £4,000 in July from last month as homeowners are forced to get real and compete with other sellers if they want to get rid of their property.

Meanwhile, Frankfurt-based Bundesbank's said Germany’s economy slowed in the second quarter.

Ten year gilt yield was up 1 basis point to 5.05% while the ten year German bund yield surged 5 basis points to 4.63%.

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