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Mixed Start

BOND SUMMARY

EGBs-GILTS: An unusual start to Tuesday trade, with Bunds roaring back from

early lows, Gilts weaker, and periphery EGBs tighter, all the while with

equities on the front foot and the USD strengthening.
- Plenty of action on the issuance front. Italy sells up to

EUR3.25bln of CTZ and EUR1.0bln of May-30 linkers, and

Germany taps Nov-27 bund for EUR4bln. And the UK sells

a combined GBP4.25bln of 1.25% Jul-27 and 1.625% Oct-54 Gilt.

- Little on the data agenda though, and the dearth of central bank

speakers continues.

** Latest levels:

* Sep Bund futures (RX) down 7 ticks at 176.73 (L: 176.49 / H: 176.75)

* Sep Gilt futures (G) down 21 ticks at 138.13 (L: 138.08 / H: 138.18)

* Sep BTP futures (IK) down 8 ticks at 147.1 (L: 146.9 / H: 147.18)

* Italy / German 10-Yr spread 0.9bps tighter at 147bps

* Sep OAT futures (OA) down 11 ticks at 168.41 (L: 168.28 / H: 168.44)

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