A relatively subdued beginning of......>

BOND SUMMARY: A relatively subdued beginning of the week for markets with

European and Asian equities close to flat on the day, with fixed income markets

following suit. US equity futures buck the trend and are a little higher.

- The highlight of the day so far has been an op ed piece written by BOE

Governor Bailey and published by Bloomberg. He gives little away about near-term

policy but states that he believes when policy is tightened, the Bank should

begin to unwind QE before it starts to raise interest rates. This is in contrast

to previous guidance from the Bank that the Bank Rate will need to reach 1.50%

before any asset purchases are actively sold by the Bank. This has helped to

fuel continued steepening at the long-end (which was initially reignited by the

Bank's decision to slow gilt purchases). The 10s30s curve has reached 50bp for

the first time since March 20, prior to the restart of QE.

- There are a few ECB speakers later today and the preliminary print of Eurozone

consumer confidence and US existing home sales are both due. The market will

begin to focus on tomorrow's PMI data which will give the first indications of

the extent to which the economy bounced back in June after lockdown reversals.