A lack of respite in global trade......>

BOND SUMMARY: A lack of respite in global trade conflicts has renewed the

risk-off tone to start the week Monday, with safe-haven bonds rallying.

- Strong risk-off move as London comes in, with 10-Yr Tsys dropping 3+bps, Gilts

down 2bps, and Bund yields hitting a new low (-0.214%). No specific headline

appears to be driving but JPY strength, equity futures lower suggests risk-off.

- Big move in near-dated Eurodollars; Dec19-Sep20 up 11-12.5ticks.

- Italian spreads wider as weekend headlines failed to assuage concerns over

conflict with Brussels. PM Conte threatening to quit Monday, per local press.

- Italy / German 10-Yr spread 1.2bps wider at 288.4bps.

- Day's highlights include ongoing PMI releases (incl Eurozone), with Fed's

Bullard, Barkin & Quarles all set to speak.

- Latest futures levels:

* Jun Bund futures (RX) up 20 ticks at 168.54 (L: 168.41 / H: 168.63)

* Jun BTP futures (IK) down 4 ticks at 130.04 (L: 129.26 / H: 130.05)

* Jun OAT futures (OA) up 11 ticks at 164.53 (L: 164.38 / H: 164.62)

* Sep Gilt futures (G) up 28 ticks at 129.93 (L: 129.79 / H: 130.01)