/EGBs-GILTS: Poor flash PMIs across....>

BOND SUMMARY: /EGBs-GILTS: Poor flash PMIs across the eurozone, highlighted by

Germany`s 43.1 flash Jul manufacturing PMI reading, worst since 2012 (Median

45.2), have sent EGBs soaring ahead of Thursday`s ECB decision.

- Strong bull flattening in German curve, 2s vs 10s down 1.4bps.

- France manuf at 50.0 vs 51.6 median started things off on a weak note.

- Weaker data likely to spur speculation of earlier/deeper ECB ease, though

little reaction in near-dated Euribor (Whites +0.5 ticks, up 3.5/4 ticks further

down.

- Periphery spreads benefiting, led by Italy 10-Yr BTP 5+bps tighter vs Bunds.

- Gilts are lagging the rally. Boris Johnson to become PM officially today, with

attention today/Thurs to be paid to his cabinet appointees and Brexit strategy.

- Still have Eurozone PMI reading later. Latest futures:

* Sep Bund futures (RX) up 46 ticks at 174.37 (L: 173.74 / H: 174.51)

* Sep BTP futures (IK) up 87 ticks at 139.99 (L: 139.04 / H: 140.19)

* Sep OAT futures (OA) up 43 ticks at 166.48 (L: 165.9 / H: 166.58)

* Sep Gilt futures (G) up 14 ticks at 132.22 (L: 131.89 / H: 132.29)