Global bonds are trading weaker,.......>

BOND SUMMARY: Global bonds are trading weaker, with a heavy slate of global

central bank meetings later this week eyed, starting with Bank of Japan.

- Italian spreads moved higher but have come back, with the 10-Yr over Bunds

falling to 233.6bps (flat on the day) from the high of 238.7bps.

- Saw a large Bund/BTP future spread around 1000BST, looked like BTPs bought,

selling Bunds. BTP/CCTeu sale was at top end of target range at E7.5bln.

- Bund futures are under pressure, with the Sep8 contract down 42 ticks at

161.64, lowest level since June 20. Flash German HICP up at 1300BST.

- Yield curves steeper with 10-Yrs under the most pressure, German 2s-10s out

2.1bps at 102bps and US up 2.4bps to 30.5bps. 

- In a big week for central bank meetings (BOJ + ECB + BOE), the BOJ meeting

overnight could have global implications (see POV at 0828BST). JGB 10-Yr yields

pushed above 0.10% temporarily this morning, putting pressure on global yields,

before BOJ stepped in to buy an unlimited amount.

- Rate futures under some pressure, with Green and Blue contracts off  3-4 ticks

on the Short Sterling strip, and smaller down moves in Euribor and Eurodollars.