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EGB/GILT

BOND SUMMARY

European govies have been bid across the board this morning, while equities have traded weaker.

- The Sep-20 gilt future has traded up to 138.63, 2 ticks off the day's high.

- The bund curve has bull flattened with the 2s30s spread 2bp narrower on the day.

- OATs have outperformed, particularly at the longer end. 30-/50-year benchmark yields are down 4bp.

- BTPs have similarly been bid with cash yields 3-4bp lower across the curve.

- Supply this morning came from the UK (Gilts, GBP5.5bn), Austria (RAGBs, EUR1.15bn) and the ESM (Bills, E1.998bn).

- The data calendar is light this morning with the only European release of note being the Spanish unemployment change data for July (-89.8k vs 20.0k survey).

- Concerns about a second wave in the coronavirus crisis in Europe continue to simmer, with focus this morning turning to the increase in new infections in Germany and Poland.

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