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Bunds pushed toward a four-session......>

EGB SUMMARY
EGB SUMMARY: Bunds pushed toward a four-session high as Thursday afternoon
progressed, tracking long-end US Treasuries higher after weaker-than-expected US
CPI data, and minutes of the ECB GC meeting in June failing to confirm a Reuters
report this week of a policymaker split over a post-Summer 2019 rate hike.
- The Sep8 Bund future gained 30 ticks over the course of Thursday afternoon,
last at 162.80, up 27 ticks on the day. The German curve bull flattened out to
10 years, with the 2s10s spread down 0.5bps at 98.6bps.
- Similarly, longer-dated Euribor futures picked up steam as the day went on,
with the Dec-21 contract up 2 ticks at 99.455.
- Periphery spreads are narrower, with Italian BTPs enjoying the strongest rally
following a solid M-T/L-T auction this morning appearing to suggest renewed
demand for Italian paper. 10Y BTP yields down 4.2bps at 2.6472%.
- That move left 10Y BTPs 3.7bps tighter to Bunds; Spain and Portugal have
rallied relatively less, by around 0.2bps apiece.
- Little of note on Friday's (EMU final Jun CPI, DBRS Italy rating review) but
potential for Brexit/Trade/EU headlines amid US President Trump's UK visit.

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