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Global bonds are paring the gains......>

BOND SUMMARY
BOND SUMMARY: Global bonds are paring the gains made after Friday`s
dovish-leaning comments by Fed Chair Powell.
- Bunds accelerated losses after German IFO came in above consensus (103.8 vs
Est. 101.8) on both higher expectations and current conditions, in the day's key
data highlight. Sep8 future off 30 ticks at 162.79.
- Likewise Euribor futures are trading weaker, off 1.0-1.5 ticks from Sep19
beyond, though the short-end remains anchored.
- Italian BTPs, hit early on Deputy PM Di Maio's comments about Italy vetoing
the EU budget, have reversed earlier losses, with the 2-Yr BTP yield 0.4bps
lower are 1.220%. Spreads 1-2bps tighter vs Bunds.
- Gilts are not trading as the UK is enjoying a holiday, US T-note Sep8 futures
are off slightly at 120-18 vs 120-19+ open, while JGB Sep8s flat at 150.49.
- With minimal data today (Chicago and Dallas Fed activity indices), the big
news today could be a breakthrough in NAFTA negotiations, with expectations
rising over the weekend on positive comments by Mexican & US policymakers.

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