Plenty of headlines from the EU.........>

EGB SUMMARY: Plenty of headlines from the EU summit in Salzburg this morning,

though little moving the needle, with the general message on Brexit being that

'more work is required'.

- The Dec 18 Bund future is down 3 ticks at 158.59, with the German curve fairly

steady so far: The 2-Yr yield is up 0.5bps at -0.52%, 5-Yr is up 0.6bps at

-0.089%, 10-Yr is up 0.3bps at 0.49%, and 30-Yr is up 0.1bps at 1.144%.

- Another day, another set of headlines on the Italian budget process: Corriere

della Sera quoting Lega's Giancarlo Giorgetti that the 2019 fiscal deficit can

go above 1.6% of GDP, even 2.0%. Deputy PM Di Maio said the deficit should rise

to spur growth. And Stampa reported that 5-Star is looking to force out

Accountant General Daniele Franco.

- Italian spreads down though, with 2-Yr 2.3bps tighter to bunds at 123.8bps.

- Apart from Salzburg, event/data risk today includes the flash EMU consumer

confidence reading for September is at 1400GMT; ECB's Weidmann speaking at

1515GMT; ECB's Praet speaking at 1720GMT.

- Supply this morning includes Spain and France M/T-L/T auctions.