/EGBs-GILTS: Despite an intraday.......>

BOND SUMMARY: /EGBs-GILTS: Despite an intraday recovery in equities, core

EGBs/Gilts remain firmly in risk-off mode Monday.

- 10-Yr Bunds off all-time low yields (-0.2129%) as Eurostoxx erased earlier

trade headline-related losses. Bunds still looking strong though, last -0.212%.

- Repubblica reported PM Conte is preparing an "ultimatum" to his two deputies,

with government "at death`s door". Presser set for 1715UK time.

- BTP spreads have narrowed, down 12bps from Monday's wides (last 281bps).

- UK Conservative leadership front-runner Johnson reiterated would leave E.U.

"deal or no deal" on Oct 31, as he officially launched his campaign.

- Weak UK Manuf. PMI for May was largely shrugged off, but Short Sterling Reds

rallying, up 5 ticks (vs 1-4 ticks in most of strip).

- Current futures levels:

* Jun Bund futures (RX) up 23 ticks at 168.57 (L: 168.41 / H: 168.69)

* Jun BTP futures (IK) up 55 ticks at 130.63 (L: 129.26 / H: 130.86)

* Jun OAT futures (OA) up 40 ticks at 164.82 (L: 164.38 / H: 164.89)

* Sep Gilt futures (G) up 38 ticks at 130.03 (L: 129.79 / H: 130.11)