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/EGBs-GILTS: Strong risk-on tone to....>

BOND SUMMARY
BOND SUMMARY: /EGBs-GILTS: Strong risk-on tone to begin the session has
moderated with initial exuberance over de-escalation in the MidEast and imminent
China-US deal signing dented by Iranian "harsher revenge soon" headline on Rtrs.
- Mar Bund futures (RX) down 47 ticks at 171.31 (L: 171.16 / H: 171.45), with
German curve steepening slightly.
- BTPs are steady, so Italy/Germany spread in a few bps.
- Mar Gilts likewise off 47 ticks at 131.09 (L: 131.04 / H: 131.2).
- Lots of supply today following two massive days on Tues and Weds: UK sells
Stg1bln of Aug-28 linkers; France sells up to E9.5bln in OAT; Spain sells
Bono/Obli/ObliEi for up to E8.25bln.
- Non-govvie EUR issuers today include World Bank, EIB, Deutsche Bank (also a
GBP), Merck, E.ON...you name it.
- Plenty of speakers: BOE's Carney at 0930GMT; later ECB's Lane (1545GMT),
Villeroy (1700GMT), Schnabel (1800GMT), and Weidmann (1910GMT).
- Data includes unemployment for Italy (0900GMT) and Eurozone (1000GMT).

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