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/EGBs-GILTS: Italian politics look.....>

BOND SUMMARY
BOND SUMMARY: /EGBs-GILTS: Italian politics look set to dominate Tuesday`s
proceedings.
- Expect plenty of Italy headlines as markets try to ascertain the next twist in
Rome, as PM Conte is set to testify before the Senate at 1400BST/1500CET.
- Indications are that if there is a confidence vote, it will be a close-run
thing, though odds of a snap election seen lower than they did last week.
- Meanwhile 10-Yr BTP spreads are a little wider, up 2.4bps at 211.0bps (though
off high of 213.2bps). Only underperforming Spain/Port/Greece by 1bps though.
- Short end of the German and UK curves is outperforming amid bull steepening.
- Thin on data today; UK CBI industrial trends and EZ construction at 1100BST.
- Short Stg up 2-3 ticks across most of the strip; Euribor fairly flat.
- Latest Europe bond futures prices: 
* Sep Bund futures (RX) up 33 ticks at 178.48 (L: 178.19 / H: 178.54)
* Sep BTP futures (IK) down 12 ticks at 141.04 (L: 140.69 / H: 141.16)
* Sep OAT futures (OA) up 29 ticks at 169.95 (L: 169.71 / H: 169.97)
* Sep Gilt futures (G) up 24 ticks at 134.62 (L: 134.52 / H: 134.68)

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