10y Bunds are trading largely in line...>

EGB SUMMARY: 10y Bunds are trading largely in line with USTs this morning as

risk-off sentiment is the biggest driver in core bond markets this morning.

- There has been little movement in BTPs despite headlines that Giorgetta,

cabinet undersecretary and close to Salvini, is pushing for an August 6 no

confidence vote to force early elections.

- Ireland has been the underperformer today as concerns over the increasing

probability of a hard Brexit, largely due to the Irish backstop, continue to

increase.

- Bund futures are up 0.25 today at 174.46 with 10y Bund yields down -1.7bp at

-0.395% and Schatz yields down -1.1bp at -0.769%.

- BTP futures are up 0.02 today at 139.47 with 10y yields up 0.7bp at 1.571% and

2y yields up 1.4bp at -0.17%.

- OAT futures are up 0.23 today at 166.70 with 10y yields down -1.8bp at -0.142%

and 2y yields down -1.2bp at -0.708%.