/EGBs-GILTS: It has been a strange.....>

BOND SUMMARY: /EGBs-GILTS: It has been a strange Thursday for EGBs and Gilts.

- In a quiet day for data Gilts started heading lower around the time of the

release of the BoE  Financial Stability Report. They took another leg lower

after Carney said that the BoE would likely lower the countercyclical buffer in

the event of a no deal Brexit, which would lower banks' minimum reserves and

hence lower demand for Gilts. This is not a surprise but the market seemed to

react anyway (worst day for Gilts in tick terms since Nov 2017).

- Bunds followed Gilts lower and largely ignored the dovish ECB Accounts. Both

have underperformed USTs.

- The afternoon session has been less directional with the Powell testimony and

US CPI data both bigger talking points than anything Europe-specific.

- Latest futures levels:

* Sep Bund futures (RX) down 77 ticks at 171.74 (L: 171.68 / H: 172.73)

* Sep BTP futures (IK) up 18 ticks at 137.96 (L: 137.74 / H: 138.47)

* Sep OAT futures (OA) down 68 ticks at 164.43 (L: 164.38 / H: 165.32)

* Sep Gilt futures (G) down 101 ticks at 130.31 (L: 130.28 / H: 131.39)