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/EGBs-GILTS: A fairly quiet start......>

BOND SUMMARY
BOND SUMMARY: /EGBs-GILTS: A fairly quiet start Thursday turned risk-on, as
China`s Commerce Ministry said Beijing is eyeing September talks with the U.S.
- The positive trade news (contrasting with U.S. trade advisor Navarro earlier
suggesting that it is unlikely that there will be a quick breakthrough in
Sino-U.S. trade talks) allowed T-Notes to lead Bunds lower, then Gilts on the
futures open, with equities moving higher across the board.
- Sep Bund futures (RX) down 26 ticks at 179.04 (L: 178.82 / H: 179.36)
- Turning to Italy, PM Conte is set to formally receive a fresh mandate from
President Matterella to form a PD/M5S coalition this morning.
- BTP spreads tighter on the cash open, 10-Yr hovering around 170bps vs Bunds.
- Little news on the Brexit front overnight, following Wednesday's prorogation
bombshell. Dec Gilt futures down 9 ticks at 134.73 (L: 134.54 / H: 134.84).
- In supply, Italy sells up to E7.25bln of BTP/CCTeu this morning.
- German state/national CPI & unemployment data as well as EZ confidence metrics
provide Thursday`s data highlights.

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