Today's ECB meeting passed by...........>

EGB SUMMARY: Today's ECB meeting passed by smoothly with little to move either

Bunds or EGB spreads. Focus turns to the beginning of the EU Summit tomorrow.

- The ECB made no change to its policy as expected, leaving the enlarged package

from the June meeting untouched. Perhaps the most interesting parts of the Q&A

was the disclosure that the ECB did not discuss the tiering multiplier at this

meeting.

- Furthermore, Lagarde reiterated that deviation from the capital key is part of

the flexibility of the PEPP. She said that convergence with the capital key

would take place at some point but would not be done in such a way as to impair

the efficiency of monetary policy. ** Latest levels:

* Sep Bund futures (RX) up 38 ticks at 176.5 (L: 176.07 / H: 176.59)

* Germany: The 2-Yr yield is down 0.4bps at -0.673%, 5-Yr is down 1.6bps at

-0.662%, 10-Yr is down 2.1bps at -0.465%, and 30-Yr is down 0.2bps at -0.026%.

* Sep BTP futures (IK) up 25 ticks at 144.64 (L: 144.11 / H: 144.75)

* Italy / German 10-Yr spread 0.4bps wider at 164.9bps

* Sep OAT futures (OA) up 35 ticks at 168.04 (L: 167.6 / H: 168.1)