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/EGBs-GILTS: It's turned risk off in...>

BOND SUMMARY
BOND SUMMARY: /EGBs-GILTS: It's turned risk off in the past half-hour as Sino-US
relations sour on reports that the U.S. has demanded the closure of the Chinese
consulate in Houston, Texas. Bunds and Gilts just off session highs (indeed Sep
Gilts have retraced after jumping to the bull trigger level of 138.20).
- Thin data calendar again. ECB Pres. Lagarde speaks at 1415BST, de Guindos
speaks at 1600BST.
- Today ends the week's issuance: Germany sells 1.25% Aug-48 bund for E1.5bn.
Portugal sells 2.875% Jul-26 PGB and 0.475% Oct-30 PGB for E1.00-1.25bn. Italy
is running a tap operation for specialists, offering up to E2bln. And the UK
sells 0.125% Jan-28 gilt for GBP3.0bln and 1.25% Nov-32 linker for GBP0.5bln.
- ** Latest levels:
* Sep Bund futures (RX) up 15 ticks at 176.52 (L: 176.2 / H: 176.61)
* Sep Gilt futures (G) up 17 ticks at 138.18 (L: 137.94 / H: 138.25)
* Sep BTP futures (IK) up 18 ticks at 146.09 (L: 145.8 / H: 146.27)
* Sep OAT futures (OA) up 8 ticks at 168.24 (L: 168.02 / H: 168.34)
* Italy / German 10-Yr spread 1.3bps tighter at 154.1bps

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