/GILT SUMMARY: In a sign of the growing........>

EGBS: /GILT SUMMARY: In a sign of the growing confidence in Boris Johnson's

prospects of becoming prime minister, his supporters have called on "vanity

candidates" to pull out of the race in order to speed up the process of electing

a new leader. 

- For the time being Johnson has tried to avoid being pulled into a televised

debate with his rivals. While his strong result in yesterday's ballot may allow

him to evade a debate, failing to do so risks buoying support for the other

contenders.

- Gilts have opened stronger this morning with yields 1-2bp lower. Current yield

levels: 2-year 0.564%, 5-year 0.599%, 10-year 0.817%.

- Bunds have firmed early in the session and the curve has flattened a touch.

2s30s is ~2bp narrower.

- Italian Deputy Prime Minister Matteo Salvini has stated that Italy's 2020

budget must have 'substantial' tax cuts. BTPs have shrugged off the latest

budget headlines, with yields ~2bp lower across the curve.

- Euribor futures are broadly 0.5-1.5 ticks higher.