EGBs/GILTS: European bonds are.........>

BOND SUMMARY: EGBs/GILTS: European bonds are trading with a soft tone to kick

off Friday, with a some inflation data and of course the G-20 meetings on tap.

- Gilts and Bunds down a few ticks each, though off early lows hit just after

0800UK. No real triggers seen, and thin volumes as G20 outcome eyed.

- Steady flow of data today, with French flash inflation a little above expected

(0.2% M/M vs flat exp.); Italy and Eurozone inflation out later at 1000UK.

- UK Q1 final GDP out at 0930UK as well.

- BTP spreads tightening (10-Yr in 4.9bps at 240.5bps). EU-Italy on the agenda

in G20; La Repubblica reported that PM Conte may be near an agreement with

Brussels to delay the decision on EDP until the autumn.

- Finland Treasury said plans to sell new EUR benchmark in H2, probably 5-Yr.

- Euribor/Short Stg strips flat / off 0.5-1.0 ticks.

- Latest futures levels:

* Sep Bund futures (RX) down 8 ticks at 172.54 (L: 172.46 / H: 172.76)

* Sep OAT futures (OA) down 4 ticks at 164.71 (L: 164.64 / H: 164.88)

* Sep Gilt futures (G) down 4 ticks at 130.42 (L: 130.3 / H: 130.42)