EGB's demand did not abate during......>

BOND SUMMARY: EGB's demand did not abate during our afternoon session.

-Bund tested higher, following comments from Merkel: "Germany sticking to zero

deficit spending."

-Merkel's comment was made in the context of the nation's climate plans.

-EU Consumer Confidence coming in stronger at -6.5 vs -7 expected, but the

latter had very little effect on price action.

-Peripherals have tightened this afternoon, beside Italy which saw some outright

selling in BTP futures ahead of the weekend.

-The currency started on the front foot following overnight comment from Juncker

that a deal was possible., but things quickly turned sour,on reports that EU

feared Brexit talks were going backwards.

-USD was bought across the board against G10 and EM when the US started to come

in, and that push the GBPUSD back below 1.2500, forcing Gilts higher.

-Gilts printed a high of 132.81 and have settled back to 132.62 at the time of

typing.