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/EGBs-GILTS: Bunds are a stronger......>

BOND SUMMARY
BOND SUMMARY: /EGBs-GILTS: Bunds are a stronger ahead of supply today, with
Sino-US tensions offsetting hopes for a COVID vaccine after Moderna's promising
trial data released last night. Gilts are flat though off opening lows.
- Indeed, Sep Bunds on session highs and potentially breaking out of the last
two days' range. Next resistance at 176.49 (Jul 13 high).
- Germany sells 0.0% Aug-30 bund for EUR5bln, while the UK sells 1.75% Jul-57
Gilt for GBP1.5bln and 2.25% Sep-23 for GBP3.25bln.
- UK Jun CPI / core came in higher than expected. No interesting data for the
rest of the morning.
- Only one Cenbank speech of note: at 0900BST we get BoE's Tenreyro.
- Against this backdrop, UK's DMO remit update and weekend's European summit
loom large for respective markets. ** Latest levels:
* Sep Bund futures (RX) up 11 ticks at 176.31 (L: 175.97 / H: 176.31)
* Sep Gilt futures (G) down 7 ticks at 137.81 (L: 137.7 / H: 137.83)
* Sep BTP futures (IK) up 4 ticks at 144.44 (L: 144.2 / H: 144.47)
* Italy / German 10-Yr spread 0.8bps tighter at 165.1bps

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