Bunds continue to move to new highs,....>

EGB SUMMARY: Bunds continue to move to new highs, helped this morning by data

confirming that the German economy contracted by 0.1% in Q2. 10y cash Bund

yields have fallen 2.9bp today to -0.638% with futures rising 0.40 to 178.08 at

the time of writing.

- BTP-Bund spreads are little changed on the day. Yesterday, Prime Minister

Conte's appearance before the Senate was confirmed for August 20. This will

likely be followed by a confidence vote. Salvini has also confirmed that he

would appoint Giancarlo Giorgetti as FinMin.

- Bund futures are up 0.40 today at 178.08 with 10y Bund yields down -2.8bp at

-0.639% and Schatz yields up 0.1bp at -0.881%.

- BTP futures are up 0.37 today at 139.63 with 10y yields down -3.6bp at 1.580%

and 2y yields down -1.2bp at 0.119%.

- OAT futures are up 0.50 today at 169.56 with 10y yields down -3.7bp at -0.354%

and 2y yields down -0.1bp at -0.777%.