EGBs/Gilts: The Daily Telegraph........>

BOND SUMMARY: EGBs/Gilts: The Daily Telegraph reports that UK PM Boris Johnson

is drawing up plans to stop a Brexit extension if MPs do not support a new

general election. One possibility could see Johnson sending both a Brexit

extension letter and a supplementary letter stating that the government does not

want a delay beyond October 31. There are question marks over the legality of

such a move. 

- Gilts have got off to a weak start with yields 3-5bp higher. Current yield

levels: 2-year 0.413%, 5-year 0.374%, 10-year 0.543%, 30-year 1.059%.

- EGB curves have broadly bear steepened since the open. 

- The 30-year German benchmark is leading the bund sell-off with the yield up

6bps. The 2s30s spread is 5bp wider.

- Similarly, pressure is greatest at the very long end of the French OAT curve.

Current yield levels: 2-year -0.774$, 5-year -0.711%, 10-year -0.309%, 30-year

0.582%.

- UK industrial production, index of services and international trade data for

July will be published at 0930 London time.