It's been a range bound trading........>

BOND SUMMARY: It's been a range bound trading session for Bund during the London

morning session. Upside was initially kept in check ahead of the German 10yr Tap

with the country allotting E2.336bln of the 0.0% Aug-29 Bunds. 

Bund are now better bid on the combination of FTQ and 60yr Swaps moving once

again below zero. 

Most of action this morning has been on the Italian Politics (BTP) and Brexit

(Gilts & GBP) 

-BTP are up 76 ticks on the day, posting big pullbacks in Yield as well as big

tightening in the German/Italy 10yr spread, trading 177.5 at the time of typing.

The BTP benefited on talks that Italy Pres Mattarella could give Conte a mandate

as soon as Wednesday, or another week to draw up policies/team. 

-GILTS: It's been a very choppy session for the contract, with price action led

by the heavy selling in the Pound following news that PM Boris Johnson will ask

the Queen to prorogue parliament. This, as an effort to scupper attempts by MPs

to prevent a no-deal Brexit. Better safe haven flow went into the British 10

year Bond as short term plays were seen bailing out in the GBP.