Euro area sovereign bonds have firmed...>

EGB SUMMARY: Euro area sovereign bonds have firmed through the session, with the

spillover from the BoE-driven gilt sell-off to core EGBs at midday proving

fleeting. EGBs have rallied amid fresh losses for equity across the region.

- The German bund curve bull flattened with the 2s30s spread 3bp narrower on the

day. The Sep-20 bund future trades at 175.61, towards the top end of the day's

range and 18 ticks off the high.

- OATs have been bid with the longer-end similarly outperforming. The 2s30s

spread has traded down 6bp.

- BTPs have also traded higher today with cash yields 1-5bp lower across the

curve.

- It was a heavy day of EGB supply with France and Spain collectively placing

EUR19.3bn. Total issuance for the week came to EUR26.8bn.

- The data calendar will be light tomorrow. Outside of the euro area the only

significant releases will be the UK retail sales data for May.