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/EGBs-GILTS: Italian spreads are.......>

BOND SUMMARY
BOND SUMMARY: /EGBs-GILTS: Italian spreads are continuing to widen on political
risk early Tuesday as U.K. and U.S. markets return from holidays.
- It is risk-off for BTPs following the weekend`s elections, with a buoyant
Salvini talking up an anti-austerity agenda amid threats of European Commission
penalties. Italy/German 10-Yr spread last 4.8bps wider at 286.9bps.
- The race to succeed U.K. P.M. May picking up as various Conservatives throwing
their names in the hat over the long weekend. Both Labour and Conservatives
reeling from poor results in the European elections, with fallout unclear.
- Gilts up, with G M9 hitting contract high (130.37).
- Focus today moves to an address from ECB's Villeroy & 2-Year supply from
Germany. Elsewhere, various domestic & EZ confidence metrics will hit.
- Current futures levels:
* Jun Bund futures (RX) up 10 ticks at 167.74 (L: 167.52 / H: 167.85)
* Jun BTP futures (IK) down 57 ticks at 129.38 (L: 129.19 / H: 129.68)
* Jun OAT futures (OA) up 7 ticks at 163.73 (L: 163.55 / H: 163.78)
* Jun Gilt futures (G) up 37 ticks at 130.28 (L: 130.14 / H: 130.37)

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