/EGBs-GILTS: Erratic trading in the....>

BOND SUMMARY: /EGBs-GILTS: Erratic trading in the early going Monday, amid mixed

Italy news and a sharply weaker Euro.

- Fitch's decision to maintain Italy at BBB (neg outl) initially boosted BTPs,

though have faded as Bunds strengthened/EUR weakened sharply early Monday.

- Political noise still abounds, local press reporting that the Democratic Party

is split, with former leader Renzi considering a split movement; Salvini said to

consider removing his minister from the gov't and force PM Conte to step down.

- Markets more decisively risk-on in the UK: stocks, GBP up; Gilts weaker.

- Some citing weekend reports of MPs drafting plans to thwart No-Deal Brexit on

Oct 31; not really much new in that though.

- Quiet docket Monday: no European data releases today or scheduled speakers.

- Short Sterling/Euribor strips steady through Dec21. Latest bond futures: 

* Sep Bund futures (RX) up 10 ticks at 177.26 (L: 177.03 / H: 177.26)

* Sep BTP futures (IK) up 80 ticks at 137.84 (L: 137.36 / H: 137.95)

* Sep OAT futures (OA) up 23 ticks at 168.57 (L: 168.41 / H: 168.57)

* Sep Gilt futures (G) down 14 ticks at 134.14 (L: 134.09 / H: 134.33)