Gilts and core EGBs have recovered.....>

BOND SUMMARY: Gilts and core EGBs have recovered most early losses Tuesday.

- The afternoon saw big moves lower in the EUR and GBP amid a strong bullish

move in the USD, Tsys, Bunds and Gilts. No headlines seen triggering.

- The Jun 19 Gilt future is down 15 ticks at 126.99, as low as 126.74 earlier.

Little Brexit newsflow seen Tuesday.

- The Jun 19 Bund future is down 15 ticks at 165.07, 36 ticks up from the low.

- Italian BTP spreads hitting widest since late February, 10-Yr up 7.1bps vs

Bunds. Spain 3.5bps wider, with Portugal likewise out 1.4bps.

- Italian ruling coalition tensions / S&P review this Friday seen weighing.

- Greece tightening though, 0.2bps richer to 10-Yr Bunds.  

- Euribor and Short-Sterling are a little weaker amid bear steepening in the

strips, down 0.5-1.5 ticks across most contracts with Golds weakest.

- Latest futures level:

* Jun BTP futures (IK) down 96 ticks at 129.19 (L: 129.03 / H: 130.11)

* Jun OAT futures (OA) down 32 ticks at 161.7 (L: 161.38 / H: 161.91)

* Jun Gilt futures (G) down 13 ticks at 127.01 (L: 126.74 / H: 127.05)