31.   Even with reports this week showing moderate growth and subdued inflation, traders held off buying bonds on concern the economy will gather steam again in the third quarter.

32.   Evidence showing moderate economic growth and subdued inflation has buttressed optimism that U.K. interest rates are unlikely to rise anytime soon.

33.   Expectations of a new round of European interest-rate reductions are growing amid reports of flagging economic growth and subdued inflation.

34.   Expectations that U.K. interest rates will be left unchanged, given evidence of slower economic growth and subdued inflation, was also helping support gilts, traders said.

35.   Expectations that subdued inflation and a slowdown in the pace of economic growth would allow another cut in British interest rates helped gilts higher Friday.

36.   Falling U.S. stocks are dimming optimism about the likelihood of lower interest rates, subdued inflation and rising profits, investors said.

37.   For now, though, the most recent figures point to slow growth and subdued inflation, a recipe that probably spells a hands-off rate policy by the Fed.

38.   Gains were tempered after a government manufacturing report failed to renew optimism for slow growth and subdued inflation.

39.   German government bonds were little changed, resisting a drop in U.S. bonds, amid optimism for lower interest rates and subdued inflation in Germany.

40.   Gilts held onto opening gains after an earnings report pointing to subdued inflation, offset concern an unexpected fall in unemployment would lead to a rebound in economic growth.