EGBs-GILTS: Gilts and core EGBs are....>

BOND SUMMARY: EGBs-GILTS: Gilts and core EGBs are weaker early Thursday on

positive headlines re prospects for an amicable U.S.-China G20 meet-up.

- Bunds took a leg lower just before 0800UK time, in part delayed reaction to

overnight SCMP story on U.S.-China tentatively reaching a temporary trade truce.

- Accelerating Saxony infl in June also hitting Bunds. German regional inflation

out over the course of the day, with national figure out at 1300UK.

- Confidence data (both Eurozone and Italy) also feature on the docket.

- Sep 19 Gilts also weaker, down 38 ticks at 130.17, though off lows (130.04).

- Was announced earlier that UK Conservative leadership candidates Johnson and

Hunt are due to square off in a debate on July 15. 

- Periphery spreads largely unchanged. Italy provides the last EGB supply of the

week this morning, selling up to E6.0bln combined of CCTEu and 5-Yr/10-Yr BTPs.

- A bit of bear steepening in the Euribor and Short Sterling strips; most

noteworthy move is L's down 4-5 ticks in Blues and Golds.

- ECB's Nowotny the only noteworthy Cenbank speaker on Thurs's global calendar.