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/ EGB/GILT SUMMARY: Core EGBs and Gilts.......>

BONDS
BONDS: / EGB/GILT SUMMARY: Core EGBs and Gilts have recovered from sharp drops
at the open, with Italian BTPs trading in a broad range.
- The Dec 18 Bund future is down 16 ticks at 158.19, climbing from weak open
today, and shrugging off strong industrial prod data for Aug as well as ECB
Draghi comments eyeing a gradual rise in core CPI over the medium-term.
- Spanish 10-Yrs underperforming, with Spanish holiday, supply, and an
anti-austerity budget proposal eyed: BTPs narrower 6.4bps vs Spain to 185.6bps.
- BTP futures up 40 ticks at 120.19, though off 120.46 highs.
- Gilts continue to climb from the opening lows, Dec18 future up 19 ticks at
120.23 just off high of 120.28 today.
- Mixed Brexit signals ahead of the rumoured breakthrough in negotiations in
coming week. UK PM May's spokeswoman said that the PM will never agree to a
Brexit backstop plan that will keep the UK in a customs union with the EU. EU's
Oettinger said Fri morning that appears a breakthrough on adeal is possible.
- Quiet on the data front for remainder of the day, though awaiting further
headlines on Brexit/IMF summit front.

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