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Italian BTPs have resumed their.........>

EGB SUMMARY
EGB SUMMARY: Italian BTPs have resumed their rally, with Bunds a little weaker
as the overall global tone remains risk-on.
- Despite headlines about 5-Star applying pressure on Fin Min Tria to spend
more, 2-Yr BTP yields are down 2.5bps at 0.605% and 10-Yr down 1.5bps at 2.774%.
- Bund Dec18 futures opened 7 ticks lower at 158.67, with the cash curve
steeper, 2-Yr yield flat at -0.5212% and the 10-Yr up 0.5bps at 0.485%.
- The rest of the periphery is a little tighter to Germany, with 10-Yr Spanish
yields 0.6bps narrower, Portugal in 0.4bbps and Greece in 0.2bps.
- Germany re-opens 0.25% Aug-28 Bund for E3.0bln this morning.
- EMU data today includes July current account figures at 0800GMT, with Jul
construction output data is at 0900GMT.
- ECB President Mario Draghi is speaking at 1300GMT in Berlin. BBK Board member
Joachim Wuermeling speaks at 1500GMT in Hamburg.
- This evening attention turns to EU-UK relations, with UK PM May set to meet
with EU counterparts ahead of Thursday's informal summit in Salzburg to discuss
the final Brexit arrangement (and a new November summit to sign off the deal).

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