/EGBs-GILTS: Politics led EGBs/Gilts...>

BOND SUMMARY: /EGBs-GILTS: Politics led EGBs/Gilts lower early, with a

pre-emptive resolution to the U.S. debt ceiling weighing on Tsys overnight.

- And the political agenda remains heavy. 1140-1200BST sees the announcement of

the next UK Conservative leader/PM (spoiler: it`s going to be Boris).

- In Italy, deputy PM Salvini has denied reports he and Di Maio will meet

Tuesday, but speculation abounds on the government`s future. And in Spain, the

Socialists will hold a vote in an attempt to form a government.

- Gilts moved higher, GBP lower on BOE Saunders comments that the Bank is not

bound by forecasts implying rate hikes. A Haldane speech is out at 1320BST.

- Thin on data today. UK CBI and Eurozone Consumer Confidence highlight.

- Euribor flat; Short Stg up 0.5-2.5 ticks. Latest bond futures levels: 

* Sep Bund futures (RX) down 10 ticks at 173.68 (L: 173.56 / H: 173.79)

* Sep BTP futures (IK) up 15 ticks at 138.57 (L: 138.51 / H: 138.89)

* Sep OAT futures (OA) down 16 ticks at 165.77 (L: 165.72 / H: 165.97)

* Sep Gilt futures (G) up 5 ticks at 131.82 (L: 131.58 / H: 131.9)