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/EGBs-GILTS: Bonds and rates are.......>

BOND SUMMARY
BOND SUMMARY: /EGBs-GILTS: Bonds and rates are having a strong start ahead of
the ECB decision later today (contact us for our preview if you haven't seen).
- Euribor strip up 1.5-2.5 ticks; Lots of questions about ERZ0 spike last night,
drove up from 100.565 to 100.645 and back again in short order, no clear driver.
Seen plenty of upside options plays via call spreads last night/earlier today.
- UK PM Johnson to make `Priorities For Government` statement to Parliament
today. Discussion already turning to possibility of autumn election.
- In Spain, key vote for acting PM Sanchez to form government. Reports late Weds
suggested talks between his Socialists and Podemos had broken down.
- Periphery spreads trading mixed, little change though (+/- 0.5bps to Bunds).
- German IFO data missed, at 95.7 v 97.2 exp. Long end continues to flattening.
- Latest futures prices:
* Sep Bund futures (RX) up 23 ticks at 174.53 (L: 174.2 / H: 174.66)
* Sep BTP futures (IK) up 45 ticks at 140.68 (L: 140.28 / H: 140.79)
* Sep OAT futures (OA) up 25 ticks at 166.67 (L: 166.39 / H: 166.76)
* Sep Gilt futures (G) up 14 ticks at 132.33 (L: 132.3 / H: 132.44)

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