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

BOND SUMMARY
BOND SUMMARY: /EGBs-GILTS: Core EGBs and Gilts are weaker, with headlines moving
the market sharply in either direction throughout Thursday.
- Early PMI data on the strong side sank EGBs, but they came back post-data.
- Gilts sold off after midday on comments out of the Johnson-Macron meet in
Paris, which was construed as constructive overall. In truth though most of the
market move was in GBP rather than Gilts.
- Weak US flash PMI helped temporarily boost European FI at 1445BST before
fading anew; though weak global equities have helped underpin since then.
- Italy`s Salvini said after meeting Pres Mattarella that Lega would still be
willing to reform gov`t with 5-Star. 10-Yr BTP/Bund spread last 4.3bps tighter.
- Focus on Jackson Hole tonight and tomorrow. Latest futures prices:
* Sep Bund futures (RX) down 58 ticks at 178.1 (L: 177.65 / H: 178.94)
* Sep BTP futures (IK) up 7 ticks at 142.46 (L: 141.91 / H: 143.02)
* Sep OAT futures (OA) down 67 ticks at 169.59 (L: 169.21 / H: 170.49)
* Sep Gilt futures (G) down 57 ticks at 134.09 (L: 133.78 / H: 134.71)

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