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/EGBs-GILTS: Risk is slightly on to....>

BOND SUMMARY
BOND SUMMARY: /EGBs-GILTS: Risk is slightly on to begin the week, with equities
on the front foot. June Bunds have already dropped 40 and rebounded 50 ticks in
the early going, leaving them slightly higher - while Gilts have gone nowhere
but up after a lower opening call.
- Negative rate talk over w/e by BOE's Haldane has driven UK short end, with
2-Yr Gilts back in negative territory. OIS pricing negative starting in Dec.
- OAT/Bund spreads are in from early wides; on Friday, Fitch revised France's
Outlook to Negative from Stable; Affirmed at AA. Periphery spreads tigher.
- In issuance, we get Slovakia and Belgium auctions this morning.
- Nothing on the European data calendar this morning, though in speakers, we get
ECB's de Cos at 1100BST and UK's Tenreyro at 1600BST. ** Latest levels:
* Jun Bund futures (RX) up 13 ticks at 173.87 (L: 173.42 / H: 173.91)
* Jun Gilt futures (G) up 19 ticks at 138.01 (L: 137.64 / H: 138.03)
* Jun BTP futures (IK) up 46 ticks at 138.23 (L: 137.52 / H: 138.36)
* Italy / German 10-Yr spread 4.5bps tighter at 234.9bps
* Jun OAT futures (OA) up 6 ticks at 167.74 (L: 167.09 / H: 167.8)

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