EGB/GILT: It has been a mixed..........>

BOND SUMMARY: EGB/GILT: It has been a mixed session so far for European govies

with gilts inching higher, bunds trading weaker, the OAT curve twisting

(short-end weaker, long-end firmer) and the EGB periphery broadly rallying.

Equities and oil are back on the front foot, while G10 currencies are mixed

against the dollar.

- The Sep-20 gilt future trades at 138.27, 2 tick's off the day's high.

- Cash bund yields are 1-2bp higher across the curve with the 3-year slightly

underperforming.

- The 2s30s OAT spread is now 2bp narrower on the day.

- BTPs have rallied with yields 2-4bp lower.

- There was no EGB/Gilt supply today.

- UK CBI Trends data for July rebounded sharply but the total orders component

still came in below expectations (-46 vs -38 survey). The August GfK consumer

confidence print for Germany was better than expected (-0.3 vs -4.5 survey),

while French business confidence data for July came in slightly below consensus.