Bunds have outperformed gilts and.......>

EGB SUMMARY: Bunds have outperformed gilts and Treasuries this morning with

Eurozone core CPI a tenth higher than survey expectations while French and

Italian CPI were also a little stronger than expected.

- The main story this morning was from La Repubblica who reported that Italian

PM Conte may be close to an agreement to move an EU decision on the excessive

deficit procedure back to September or October. This has helped BTPs, with 10y

futures hitting highs of 134.34 before retracing some of this move back to

134.09 at the time of writing.

- Bund futures are up 0.06 today at 172.68 with 10y Bund yields down -0.1bp at

-0.323% and Schatz yields down -0.4bp at -0.748%.

- BTP futures are up 0.33 today at 134.09 with 10y yields down -3.4bp at 2.099%

and 2y yields down -1.9bp at 0.209%.

- OAT futures are up 0.07 today at 164.82 with 10y yields up 0.1bp at -0.1% and

2y yields down -0.5bp at -0.681%.