EGBs/Gilts: European govvies have......>

BOND SUMMARY: EGBs/Gilts: European govvies have seen decent moves this morning,

seemingly on the back of another negative US-China trade headline. There have

been no significant data releases, speakers or any follow through from

yesterday's UK election leadership debate.

- Gilts are bid with yields 2-4bp lower and the curve 2bp flatter.

- There was a small amount of EGB supply earlier with Germany allotting E1.17bln

of the 0.0% Aug-50 bund and Finland selling E1.49bln in 3-month and 6-month

bills.

- Core EGB yields are similarly pushing lower. The German bund curve has bull

flattened with 2s30s down 4bp on the day.

- French OATs have traced out a similar path with the longer-end outperforming.

Current yield levels: 2-year -0.616%, 5-year -0.409%, 10-year -0.067%, 30-year

0.723%.

- Italian BTPs have been the big mover among the EGB majors. Yields are 2-5lower

with the belly of the curve outperforming.