Long-dated Euribor and Bunds are........>

EGB SUMMARY: Long-dated Euribor and Bunds are weaker as markets seem more

focused on the upcoming ECB and Fed meetings this week than on data/geopolitics.

- Bunds remain weaker on the day despite a poor ZEW reading this morning, which

included below-consensus readings for current conditions and economic sentiment.

Sep Bund futures down 23 ticks at 159.51.

- Italian spreads' rally was interrupted by an Ansa headline saying that Italy's

economy ministers seek to 'change the music' with the EU. 10Y BTPs still tighter

by 2.9bps vs Bunds, at 231.6bps, while the 2-Yr gap is down 19.2bps at 150.2bps.

- 10Y French OAT spread has come off 1.8bps vs Bunds at 39.0bps, after looking

as though it would test 2-year highs yesterday.

- Euribor strip biding time to the ECB meeting, with long end off 0.5-1.0 ticks.

- While speculation abounds as to whether the ECB will announce an end to the

APP this week, the July meeting is the likelier date, as our Policy team

reported this morning. Some Eurosystem voices tell MNI that the discussion on

ending APP should not even begin before then. See Main Wire story 1046BST or

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