/EGBs-GILTS: Risk appetite is..........>

BOND SUMMARY: /EGBs-GILTS: Risk appetite is creeping back into the European bond

space Thursday, with core EGBs taking a breather and Eurostoxx up 0.7%.

- Long-end of German curve coming off multi-year low yields, 10-Yr up 2.3bps.

- Periphery spreads tightening, IT/ES/SP/PT/GR in 2.5-4.1bps to 10-Yr Bunds.

- Supply today includes Italy and Portugal (Panda bonds).

- Sep 19 Gilts down 24 ticks at 129.29 (today is last trade/first notice for the

Jun contracts). Little impact from BoE's Ramsden who reiterated that 'rates

could need to go up or down after no deal Brexit'.

- Short-Sterling futures off 1.5-2.0 ticks; near-dated Euribor fairly steady

though off 1.0-1.5 ticks further down the strip (Blues/Golds).

- Pretty slow on the data and speaker slate today, earlier only Spain inflation

(HICP 0.9% Y/Y below MNI Median 1.2%) and retail sales of note.

- Latest futures prices: 

* Jun Bund futures (RX) down 21 ticks at 167.81 (L: 167.72 / H: 167.96)

* Jun BTP futures (IK) down 4 ticks at 130.2 (L: 129.97 / H: 130.3)

* Jun OAT futures (OA) down 20 ticks at 163.89 (L: 163.8 / H: 164.06)