A risk-on theme has continued in.......>

BOND SUMMARY: A risk-on theme has continued in markets this morning with USTs,

Bunds and gilts all moving lower following positive US-China trade headlines

overnight.

- There has been a lack of key data this morning with the only highlight the UK

services PMI. The headline print of 50.0 was 0.3 stronger than expected but the

details were disappointing with volumes of new work continuing to decline. Polls

have also seen the Conservative party lose some more ground, with betting odds

of a hung parliament now around 50%, with a Tory majority around 44%. These

probabilities have switched over the past few days and together with the poor

details in the services PMI have seen gilts outperform USTs and Bunds today.

- This afternoon the focus will be on the ISM non-manufacturing index while US

trade will also be released. We will also hear speeches from the Fed's Barkin

and Kaplan and the ECB's Visco.

- TY1 futures are down -0-7 today at 129-11+ with Bund futures down -0.42 at

170.57 and Gilt futures down -0.28 at 131.55.