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BOND SUMMARY: CORRECTED:EGB/GILT SUMMARY: European govies have trade weaker this
morning, unwinding some of last week's bull flattening. European equities have
inched higher, while oil has trade lower.
- Gilts have pushed lower with cash yields 1-2bp higher across the curve.
- Bunds have underperformed gilts with the curve bear steepening. Current
yields: 2-year -0.6852%, 5-year -0.6568%, 10-year -0.4439%, 30-year -0.0160%.
- OAT yields are up 1-3bp with the longer end similarly underperforming. The
2s30s spread is 2bp wider.
- BTPs have traded broadly inline with core EGBs. Cash yields are 2-3bp higher.
- Supply this morning came from Germany (Bubills, EUR5.6bn) and the Netherlands
(DTCs, EUR3.71bn).
- Focus this week will be on the ECB meeting on Thursday. Given the policy
package announced in June, no significant changes are expected this time around.
In light of comments made by Isabel Schnabel and Klaas Knott, expect questions
during the press conference on whether PEPP will be fully utilised.

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