Bunds have given up the gains they......>

EGB SUMMARY: Bunds have given up the gains they made this morning. They continue

to outperform gilts but are now only marginally outperforming Treasuries on the

day.

- Markets continue to look ahead to tomorrow's ECB meeting and the EU Summit on

Friday-Saturday. Little is expected from the ECB meeting overall. Even technical

adjustments such as raising the deposit tiering multiple, or including 'fallen

angels' into the universe of eligible PEPP securities, are likely to be reserved

for potential future use if fragmentation risks return. Both of these measures

would be a positive surprise for the July meeting.

- Our ECB preview went out today, contact us if you haven't seen it.

** Latest levels:

* Sep Bund futures (RX) steady at at 176.2 (L: 175.92 / H: 176.47)

* Sep BTP futures (IK) up 5 ticks at 144.45 (L: 144.2 / H: 144.63)

* Sep OAT futures (OA) up 2 ticks at 167.76 (L: 167.5 / H: 167.96)

* Italy / German 10-Yr spread 1.5bps tighter at 164.4bps