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BOND SUMMARY

Bonds appear to be the poor cousin of equities/FX Tuesday morning in terms of price action, with Bunds and Gilts trading in a 22-23 tick range.

Periphery spreads meanwhile are tightening, with BTPs through Monday's narrowest levels.

Issuance today includes UK selling 0.125% Jul-26 gilt for GBP3.25bn and 1.25% Oct-41 for GBP2.25bn, and Austria tapping 0.0% Jul-24 RAGB and 0.0% Feb-30 RAGB for E1.15bn.

Limited data slate for the rest of the day (Spain Unemp came in well below consensus at -89.8k in Jul vs +20k exp and +5.1k prior); Eurozone Jun PPI at 1000BST.

And no central bank speak; Thursday's BoE meeting still in focus. ** Latest levels:

  • Sep Bund futures (RX) up 8 ticks at 177.39 (L: 177.19 / H: 177.41)
  • Sep Gilt futures (G) up 2 ticks at 138.51 (L: 138.37 / H: 138.51)
  • Italy / German 10-Yr spread 1.8bps tighter at 151.2bps

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