/EGBS-GILTS: Core EGBs and Gilts are...>

BOND SUMMARY: /EGBS-GILTS: Core EGBs and Gilts are weaker early Wednesday.

- Bunds mirrored Tsys weaker overnight, then strengthened as European traders

came online but have since faded; Gilts have been weak from the off.

- Short Stg/Euribor strips pretty flat, off 0.5-1.5 ticks in some contracts.

- UK Times published an article suggesting Sep 3 could be a key date for the

next Prime Minister (see our bullet of 0846BST).

- Decent French Cons Conf data, German Gfk a slight miss; neither market-movers.

- Austria syndication underway, selling 5-Yr benchmark and tapping 2117 century

bond. Size is E3bln (no grow) on 5-Yr, 2117 is TBA.

- Only other issuance is Italy selling 6-month BOTs. Tomorrow is BTP/CCTeu sale.

- Cenbank speakers: ECB`s Mersch (1000UK, unlikely to have monpol implications)

and BOE`s Carney et al. at Tsy Committee (1015UK time). Latest futures: 

* Sep Bund futures (RX) down 23 ticks at 172.65 (L: 172.58 / H: 172.82)

* Sep BTP futures (IK) down 18 ticks at 133.34 (L: 133.17 / H: 133.58)

* Sep OAT futures (OA) down 21 ticks at 164.71 (L: 164.66 / H: 164.87)

* Sep Gilt futures (G) down 13 ticks at 130.72 (L: 130.65 / H: 130.84)