A range bound trading afternoon.........>

EGB SUMMARY: A range bound trading afternoon session for EGBs -Bund traded

within a 30 ticks range (176.59-176.89), lacking any type of direction bias. 

-Curve saw better bear flattening interest on the margin in 2s/10s, 5s/30s. 

-The story of the day was the move higher in BTP futures, a continuation from

the EU recovery fund deal. 

-Italian 10 year yield is now trading back below 1% at 0.989%, levels not seen

since the beginning of March. 

- Peripheral spread have been on the front foot against Germany, with Greece

leading the pack 7.5bps tighter versus the Bund.

-Italy trades 5.1bps tighter and its yield is now back below Greece, 0.898% and

1.042% respectively.

** Latest levels: 

* Germany: The 2-Yr yield is up 1.5bps at -0.671%, 5-Yr is up 1.6bps at -0.673%,

10-Yr is up 0.6bps at -0.484%, and 30-Yr is down 0.3bps at -0.064%. 

* Sep BTP futures (IK) up 51 ticks at 147.03 (L: 146.52 / H: 147.23) 

* Sep OAT futures (OA) down 6 ticks at 168.46 (L: 168.37 / H: 168.57)