Heavy supply has been the name of......>

BOND SUMMARY: Heavy supply has been the name of the game in European bond

markets this morning. Syndications of the 2041 UK linker, 10yr EFSF, 2053 EFSF

and the Italian 2049 BTP are underway or imminent. The Netherlands have sold the

2029 DSL. In terms of bill issuance we have Germany, the Netherlands, Spain and

Belgium all coming to the market today. Economic data has been no match, with

the highlight disappointing Italian retail sales.

- In terms of market moves, core bonds are under some pressure this morning,

with TY1 futures below the post-payrolls low of Friday, the lowest level since

mid-June.

- UK politics will be in focus today with the Grieve amendment potentially being

voted on today (as long as the Speaker selects it). This would stop the next PM

proroguing parliament. The televised ITV debate between Hunt and Johnson is also

due today, but could be potentially pushed back a bit if the vote does happen

today.

- Across the pond, Powell is due to speak today but he is not expected to say

anything relevant for mon pol until tomorrow's testimony.