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/EGBs-GILTS: A big reversal for core...>

BOND SUMMARY
BOND SUMMARY: /EGBs-GILTS: A big reversal for core FI in early European trading,
as Bunds sold off sharply post-EU recovery deal announcement, only to completely
bounce back and then some. Gilts have traded in parallel. Curves mixed.
- Periphery spreads have held on to most early narrowing amid post-deal
euphoria, though are off tightest levels.
- UK sells GBP3.0bln of 1.50% Jul-26 gilt and GBP2.25bln of the 0.625% Oct-50
gilt. In EGBs, Germany will tap the 0% Jun-22 Schatz for E5bn, and Lithuania
sells 30-Yr via syndication.
- ECB's de Guindos and Stournaras speak at 1430BST.
- Another thin morning for European data. ** Latest levels:
* Sep Bund futures (RX) up 2 ticks at 176.39 (L: 176.06 / H: 176.42)
* Sep Gilt futures (G) up 2 ticks at 137.91 (L: 137.76 / H: 137.92)
* Sep BTP futures (IK) up 42 ticks at 146.26 (L: 145.95 / H: 146.4)
* Italy / German 10-Yr spread 4.8bps tighter at 151.6bps
* Sep OAT futures (OA) up 8 ticks at 168.28 (L: 167.99 / H: 168.31)

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