/EGBs-GILTS: Activity in the space.....>

BOND SUMMARY: /EGBs-GILTS: Activity in the space has picked up early Wednesday.

- Saw rally on big volume in core EGB and Euribor futs on the open which lost

some steam. No clear driver: theories include fully pricing in Lagarde as ECB

president post-Von der Layen confirmation; risk-off after very weak EU car

registrations data (though not confirmed by equity move).

- Things have calmed but Gilts/EGBs higher. Gilts still boosted by no-deal

Brexit fears (alongside post-2017 lows for GBPUSD below 1.24).

- Of interest this morning are UK inflation data (0930UK) and the beginning of

two days of G7 meetings with the likes BOE's Carney and ECB's Draghi involved.

- ECB's Coeure will also be at G7; reiterated earlier that the GC was

'determined to act' if needed, with risks to growth tilted to the downside.

- On the issuance front, Germany re-opens 1.25% Aug-48 Bund for E1bln.

- Rate futures (ER, L) up 1-3 ticks. Latest bond futures levels: 

* Sep Bund futures (RX) up 38 ticks at 172.72 (L: 172.44 / H: 172.8)

* Sep BTP futures (IK) up 20 ticks at 139.19 (L: 138.93 / H: 139.35)

* Sep Gilt futures (G) up 38 ticks at 130.94 (L: 130.87 / H: 131)