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EGB/GILT

BOND SUMMARY

European govies have broadly traded weaker this morning alongside mixed
trading in equities.
- Gilts have sold off slightly with cash yields 1-2bp higher and the curve close
to flat. UK PM Boris Johnson earlier warned businesses to prepare for a
second wave of the coronavirus later in the year, despite urging individuals to
return to work.
- Bunds started the session on the weaker footing but quickly recouped losses
and now trade close to unch on the day.
- BTPs have underperformed with yields 2-3bp higher.
- Supply today came from the UK (Gilts, GBP4.25bn), Italy (CTZ &
BTPEi, EUR4.25bn) and Germany (Bund, EUR3.28bn).
- The data calendar was relatively light this morning. The UK CBI Retailing
Reported Sales print for July beat expectations (4 vs -25).

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