/EGBs-GILTS: Core FI has recovered a...>

BOND SUMMARY: /EGBs-GILTS: Core FI has recovered a sharp dip early, with

equities taking a dive in the past few minutes. Not much in the way of catalyst,

going in tandem w USD and safe haven instrument buying (lingering COVID fears).

- ECB Chief Econ Lane w interesting comments this morning, notes that further

asset purchases preferred to negative rates.

- In supply, Austria selling EUR2bln (no grow) new Century bond via syndication.

UK sells Gilts: 2.75% Sep-24 for GBP3.25bln and 1.25% Oct-54 for GBP1.5bln.

- The data highlight: German IFO out at 0900BST. ** Latest levels:

* Sep Bund futures (RX) down 17 ticks at 175.44 (L: 175.2 / H: 175.59)

* Germany: The 2-Yr yield is up 0.2bps at -0.657%, 5-Yr is up 0.7bps at -0.649%,

10-Yr is up 0.8bps at -0.4%, and 30-Yr is up 0.3bps at 0.078%.

* Sep Gilt futures (G) down 1 ticks at 137.1 (L: 136.88 / H: 137.12)

* UK: The 2-Yr yield is down 0.1bps at -0.061%, 5-Yr is down 0.2bps at -0.01%,

10-Yr is down 0.1bps at 0.21%, and 30-Yr is down 0.2bps at 0.687%.

* Sep BTP futures (IK) up 5 ticks at 143.77 (L: 143.61 / H: 143.95)

* Italy / German 10-Yr spread 0.7bps tighter at 165.7bps