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/EGBs-GILTS: A suddenly-looming........>

BOND SUMMARY
BOND SUMMARY: /EGBs-GILTS: A suddenly-looming Italian election has triggered the
biggest drop in BTPs since Sep 2018, though are beginning to claw back losses
early Friday alongside a retracement in Bunds and Gilts.
- An Italian confidence vote is expected in the next couple of weeks
(unspecified); see our bullet at 0334BST for more details.
-A few dates being floated for early elections: Corriere reporting Salvini
prefers Oct 13; Repubblica says may be Oct 23.
- Entire BTP curve hit: 2-Yr yield is up 14.6bps at 0.185%, 5-Yr is up 16.3bps
at 1.004%, 10-Yr is up 17.6bps at 1.71%, and 30-Yr is up 13.6bps at 2.674%.
- Italy / German 10-Yr spread last 17.6bps wider at 227.1bps (high: 236.7bps).
- French IP fell at its steepest monthly pace since Jan 2018 in Jun (-2.3% vs
-1.2%exp); small and not long-lasting drip in OATs thereafter.
- UK GDP at 0930BST provides the day's data highlight.
- Sep Bund futures (RX) up 34 ticks at 177.27 (L: 177.13 / H: 177.55); Gilt
futures (G) up 32 ticks at 134.16 (L: 134.03 / H: 134.26).
- Rate futures strips relatively unchanged.

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