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/EGBs-GILTS: European FI is under......>

BOND SUMMARY
BOND SUMMARY: /EGBs-GILTS: European FI is under pressure early Friday, with
Italian politics and the Jackson Hole conference in focus.
- BTPs weaker: 10-Yr spreads started narrower (compressing 4bps vs Bunds, low of
190.5bps), but last up 1.9bps at 197.0bps. Some follow-through from last night's
extension until Tues for Democratic Party to form coalition with 5-Star.
- But Gilts and Bunds also lower, not part of broader risk-on move though.
Potentially some lingering concerns over Fed speaker hawkishness yesterday, and
concern that Fed`s Powell may not assuage dovish rate markets today.
- ECB`s Smets speaks at Jackson Hole (1755BST),BOE Gov Carney speaks at Jackson
Hole (2000BST); BOE`s Tenreyro on Saturday 1500BST.
- G7 at Biarritz this weekend; Brexit in focus.
- Dearth of European data Friday. Latest futures prices:
* Sep Bund futures (RX) down 54 ticks at 177.5 (L: 177.49 / H: 178.1)
* Sep BTP futures (IK) down 33 ticks at 142.12 (L: 141.89 / H: 143.03)
* Sep OAT futures (OA) down 55 ticks at 168.98 (L: 168.97 / H: 169.47)
* Sep Gilt futures (G) down 59 ticks at 133.42 (L: 133.38 / H: 133.84)

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