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/EGBs-GILTS: Bunds and Gilts have......>

BOND SUMMARY
BOND SUMMARY: /EGBs-GILTS: Bunds and Gilts have bounced off the lows in early
European trade but not really much price action of note, with trading fairly
thin and fairly narrow ranges.
- This despite equities in the green across the board.
- BTP spreads opened tighter (Fitch affirmed Italy at BBB-; Outlook Stable
Friday), but have drifted a little wider since.
- EU discussions on recovery fund eyed this week ahead of Jul 17-18 summit,
though no final resolution expected (headlines over the weekend highlighted
potential for compromise w "frugal four" and stumbling blocks thereon).
- Virtually nothing on the European data calendar. ECB's Panetta speaks at
1030BST, while BOE Governor Bailey makes appearances at 1400BST and 1630BST.
- And no EGB/Gilt issuance on the docket today either (though decent supply
coming this week, incl E35.5bn of EGBs). ** Latest levels:
* Sep Bund futures (RX) down 27 ticks at 176.36 (L: 176.22 / H: 176.48)
* Sep Gilt futures (G) down 23 ticks at 137.65 (L: 137.55 / H: 137.7)
* Italy / German 10-Yr spread 0.6bps wider at 169.7bps

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