It has been an eventful day for EGBs....>

EGB SUMMARY: It has been an eventful day for EGBs. After a fairly quiet morning

session, Reuters headlines that Germany may increase issuance substantially to

fund environmental projects through the issue to green bonds saw Bund futures

kneejerk 80 ticks lower. Around 2/3 of this move has now been retraced as the

credibility of the unnamed source for the story was questioned while other

similar recent stories, most notably from Handelsblatt this morning were cited

which had no real market impact.

- There has also been focus on Italy today as stories surfaced last night that

Salvini had given Conte until Monday to change the cabinet or he would push for

elections in late October. Ansa headlines in the early afternoon suggested that

Salvini would meet with President Matterella today. Later headlines suggested

that Salvini had not pushed for a cabinet reshuffle and that only a new election

would solve current issues.

- Bund futures are down -0.43 today at 176.93 with BTP futures down -1.48 at

140.00 and OAT futures down -0.54 at 168.55.