A choppy morning session with all......>

BOND SUMMARY: A choppy morning session with all the focus on the German

constitutional court proceedings on the PSPP program this morning.

-German court decision take away: 

This decision seems big. Court fundamentally disagrees w ECJ. PEPP not part of

the decision. 

-ECB needs now to show that QE measures are proportionate, and that Bundestag

have now a duty to take active steps against the PSPP in its current form. =BTP

were hit on the decision, pushing the German/Italy spread 3bps wider at the time

of typing. 

-It's been a fairly stable, range bound session for Gilts, with all the focus on

Germany. The contract has traded in a tight 25 ticks range and sits just down 9

ticks so far this morning. 

-Treasuries, are trading in negative territory, a continuation from the Asian

session, where Equities stayed better bid on the re-opening hopes.

-US Tnotes, are now just off their lows, in line with indices pullbacks from

their best levels.