After a weak European open off the.....>

BOND SUMMARY: After a weak European open off the back of headlines that stated

that the US and China are putting any hostilities on ice ahead of the G20

meeting, the main move of the morning saw Bunds and gilts take another leg lower

on the back of a solid Saxony PMI print, with the Y/Y rising 0.4pp.

- However, the key short-term Bund futures support at 171.95 from the June 25

low largely held and Bunds and wider bond markets have retraced some of their

losses, helped by smaller increases in the Y/Y print of other state CPIs.

Spanish CPI fell more than expected while Italian and pan-Eurozone confidence

data also disappointed.

- Looking ahead, the German national HICP print will be published at 13:00BST

while we receive US claims, the third print of US GDP and pending home sales

later today too. Politics is likely to remain in focus with the G20 due to get

fully underway tomorrow and many world leaders already beginning to arrive in

Osaka.

-TY1 futures are down -0-3 today at 127-16, Bund futures are down -0.27 at

172.23 and Gilt futures are down -0.32 at 130.23.