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EGB/GILT: European govies have.........>

BOND SUMMARY
BOND SUMMARY: EGB/GILT: European govies have traded mixed this morning. 
- The gilt curve has bear steepened this morning with the 2s30s spread widening
2bp.
- Bunds trade trade close to yesterday's closing levels.
- OATs similarly trade close to unch. Current yield levels: 2-year -0.6117%,
5-year -0.5205%, 10-year -0.1243%, 30-year 0.5806%.
- BTPs remain bid with cash yields 1-2bp lower. 
- Capping off a round of relatively dovish commentary, ECB President Christine
Lagarde today warned of a complicated recovery, while Governing Council member
Olli Rehn stressed that its is better to be safe than sorry and not withdraw
monetary stimulus too early.
- Supply this morning came from Italy (BOTs, E7bn) and the UK (Bills, GBP1.5bn).
- With the European data calendar now rundown, focus shifts to this afternoon's
US releases: PCE deflator for May and Uni. Michigan survey (final results) for
June. 

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