EGB/GILTS CLOSING SUMMARY: Its been....>

BOND SUMMARY: EGB/GILTS CLOSING SUMMARY: Its been an eventful afternoon for EGBs

and particularly BTPs. The Italian contract was driven by Italian political

headlines throughout the London session. Reports this morning that talks between

party were collapsing kept the BTP upside capped.

BTP quickly went better bid on news that "DEMOCRATS READY TO ACCEPT CONTE AS

PREMIER"., and, also ECB Guindos: "*ECB'S GUINDOS: WE'RE GOING TO HAVE LOW RATES

FOR LONG -bbg", with the easing and QE benefiting the Italian Government bonds.

The German/Italy 10y spread broke through July low to trade 183bps. Bund prices

have remained buoyed following BTP price action.

GILTS: Are within ranges in time of typing, despite earlier reports that EU may

re-open withdrawal agreement following G7 talks - UK official.

- Bund futures are up 0.31 today at 178.83 with BTP futures up 1.90 at 144.44

and OAT futures up 0.39 at 170.31.