Risk aversion seen earlier in the......>

BOND SUMMARY: Risk aversion seen earlier in the week has abated, pushing

safe-haven bond yields higher, but volatility in Italian spreads continues.

- Yields on US Tsys, Bunds and JGBs are higher as the flight to safety has

abated. 10-Yr UST yields up 1.1bps at 2.873%, Bunds up 1.1bps at 0.315%, and

JGBs up 0.1bps at 0.102%.

- Gilts initially sold off following July retail sales data beating

expectations, dropping as many as 12 ticks before recovering to pre-release

levels, last down 16 ticks at 123.67.

- Italian 10-yr BTP spreads over German bunds have traded in a range of

280.0-289.6bps Thursday, last at 282.0bps, which is down 4.4bps from Wednesday.

- 10-yr BTP yield hit highest since May 30 at 3.207% on continued concerns of

political fallout from the Genoa bridge collapse, but now back down at 3.134%.

- Rate futures curves bear steepening, with Green/Blue Eurodollars down 3 ticks.

- Norges Bank's decision to hold rates at 0.50% in line with expectations was a

non-event as expected, keeping focus on a September hike.

- Turkey Fin Min Albayrak's foreign investor call later could be key (1400BST).