Bond markets are little changed as.....>

BOND SUMMARY: Bond markets are little changed as participants digest

geopolitical headlines while eyeing ECB GC accounts and US CPI later Thursday.

- Sep8 Gilt future up 10 ticks at 123.03 after Q2 BoE credit conditions survey

showed higher default rates on unsecured lending and a drop in available credit.

- USTs are slightly weaker, 10-year yields up 1.1bps at 2.860%. Eurodollar

futures lower across the strip, Red through Blue contracts 2.0-2.5 ticks down.

- US CPI and jobless claims up at 1230GMT; Fed`s Kashkari & Harker due to speak.

- German Bunds are flat after earlier losses were reversed by mid-morning; Sep8

future unchanged at 162.53; heard a cash seller in that contract from 162.60

turned to cash buyer in lows in 162.50s.

- The ECB releases accounts of its Jun 13/14 GC meeting at 1130GMT today and

following an ECB sources story by Reuters Wednesday, markets will have a close

eye for any differences of opinion on timing of first interest rate hike.

- JGBs have recovered earlier losses, with the 10-year yield down from a high of

0.047% to 0.040%, down 0.3bps on the day. 20-Year JGB auction earlier was well

received, with a slightly higher cover ratio at this auction vs the previous.