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EGB Supply for W/C Jul 26


Pullback Considered Corrective


What a Short, Strange Trip It's Been


Pfizer, Moderna Jabs Retain High Trust; AZ, Sputnik Lower


Trend Indicators Remain Bearish

     US TSYS SUMMARY: Treasuries open Tues higher, near overnight price high,
aided by recent Reuters ECB source story saying Gov Cncil differs whether shd
announce "firm end-buy" for ECB bond buy program. Tsys may be quiet as all await
Wed 2pm ET FOMC mtg outcome, 2:30pm Wed Fed Chr Yellen news conf. 
- TOKYO: Tsys saw early buys, end-user buying across curve; real$ buying
intermeds; asset mgrs bought 5Y, 10Y. Jpn accts bought 5Y but sold lg end;
insurance portfls buying lg end. Jpn Nikkei stock index +2%: catchup on global
stk gain after Mon Jpn holiday. 
- LONDON: Tsys carryover buying in 2-way trade: bk portfls bought 3Y, 5Y;
European accts bought 5Y, sold 7Ys. Real$ bought 10y, end-users and foreign
central banks sold 10Y, 30Y. Tsys gained more on ECB story. - EURODLR FUTURES:
Mildly higher rebound from Mon weakness, sale. 
- O/N RP: Tsy 3Y, 5Y, 7Y, 10Y notes all tight in RP. 
- US SWAPS: Steady/mild tightness; bk paying 10Y swaps, fast$ in belly. 
- US HIGH-GRADE CORPS: Tues: KazTransGas 10Y, SP PowerAssts 10Y, South Africa
10Y, 30Y.
GILT SUMMARY: Gilts are trading mixed with the belly of the yield curve little
changed, however the wings (2-yr and 30-yr) are modestly higher despite a
disappointing 30-yr Gilt re-opening auction. 
- 2-yr Gilt yield is -0.7bp at 0.415%, 5-yr unchanged at 0.732%, 10-yr +0.3bp at
1.305% and 30-yr -0.4bp at 1.902% according to Tradeweb. 
- Gilts opened little changed from Monday's closing levels due to lack of
direction seen overnight in Asia. However, markets were waking up to a Times
article reporting that there will be a special cabinet meeting on Thursday ahead
of May's key Brexit speech on Friday in Florence. The move seen to get some sort
of government consensus on Brexit strategy. 
- There was some receiving in 5y5y and 10y5y swaps earlier which helped push
Gilts higher, while 30-yr yield dropped 3bp before its re-opening auction. An
increase in the tail and drop in cover at the auction weighed on Gilts though
with the 30-yr paring gains by 2bps. 
- 30-yr breakevens are 1.7bp wider while swap spreads are little changed
EGB SUMMARY: There is a small bid to the longer ends of core markets today but
the sub-10Y area is almost unchanged. To be precise, the 10Y Bund yield is lower
by around 0.5bp at 0.45%. - Peripheral markets are performing strongly although
early gains in Portugal, which saw the Bund-PGB spread decline 5bp, have been
surrendered. Instead, investors are buying Bonos & BTPs. In Italy, senior bank
credit spreads tightened upon news that a bond tranche that sits between Junior
and Senior tranches could be introduced to buffer senior debt holder in the
event of a bailout. However, Spanish debt is outperforming BTPs today. 
- The Swiss franc fell sharply this morning as investors speculated that large
Swiss insurance companies would need dollars to pay for hurricane damage. This
has knock-on effects upon SNB purchases of EGBs but the impact was insignificant
- Within the semi-core Belgian debt is strongest after completing 94% of
issuance needs this year. 
- The only decent European data was from the ZEW, which came firmer than
--MNI New York Bureau; tel: +1 212-669-6432; email: