EGB/GILTS SUMMARY: Trade is once.......>

BOND SUMMARY: EGB/GILTS SUMMARY: Trade is once again the driver this morning,

and in light of a quieter week on the data front, there's no surprises that

algos hang and react on every headlines. 

-Main early moving headline from the MOFCOM press conference where officials

said that "outside rumours are incorrect" regarding agreements surrounding

tariff removals. 

-Provided an early bid into EGB's and in turn Gilts and Treasuries, but the

early morning move, quickly reversed on: 

- Dow Jones sources "China's chief negotiator has invited his American

counterpart for another round of face-to-face talks." 

-Peripherals see Italy 10yr 3bps tighter against the German 10. BTP/BUND spread

is 3.2bps tighter on the day. -Gilts have taken their cue from Treasuries and

EGBs, with some focus on the UK labour manifesto.

-Bund -0.13 today at 170.96 with BTP futures up 0.26 at 142.11.

- Gilt -0.18 today at 131.57 with 10y yields up 1.2bp at 0.740% and 2y yields up

0.5bp at 0.567%.