Core bonds have stayed within their....>

BOND SUMMARY: Core bonds have stayed within their ranges of the past couple of

days today as they have drifted lower as risk has recovered.

- Risk has been helped somewhat by the headlines that Germany will fully abolish

solidarity charges for most taxpayers, a move seen as equivalent to a tax break

of 0.2% of GDP.

- The German 30yr Bund auction was technically uncovered with a real

bid-to-cover of just 0.41x.

- Italian headlines have not really moved BTP-Bund spreads this morning.

- The FOMC Minutes released later are unlikely to be market moving with the

focus remaining on Jackson Hole.

- Gilt futures are down -0.22 today at 134.47 with 10y yields up 2.3bp at 0.473%

and 2y yields up 1.5bp at 0.495%.

- Bund futures are down -0.34 today at 178.56 with 10y Bund yields up 2.0bp at

-0.672% and Schatz yields up 0.4bp at -0.907%.

- BTP futures are down -0.10 today at 142.20 with 10y yields down -2.3bp at

1.347% and 2y yields up 1.4bp at 0.034%.