A strong European morning for..........>

BOND SUMMARY: A strong European morning for equities has not translated into a

boost for core FI so far. Thin data/speaker calendar globally.

- The standout move has been in UK short end rates, with 2-yr yields dipping

back into negative territory as Dec2020 OIS below zero on BoE's Haldane making

remarks over the weekend raising the spectre of the bank going negative.

- French spreads opened wider after Fitch revised France's Outlook (on AA) to

Negative from Stable on Friday, but have settled back down. Periphery EGB

spreads tighter across the board as well.

- BTP Italia retail sale has begun; Slovakia and Belgium issuing today.

- Fed's Powell didn't really move the needle on 60 Minutes Sunday evening apart

from further hints for the fiscal authority to do more.

- European curves bull steepening for the most part. Latest levels:

* Jun 10-Yr U.S. futures (TY) up 1.5/32 at 139-12 (L: 139-07.5 / H: 139-12.5)

* Jun Bund futures (RX) up 31 ticks at 174.05 (L: 173.42 / H: 174.08)

* Jun Gilt futures (G) up 27 ticks at 138.09 (L: 137.64 / H: 138.13)

* Italy / German 10-Yr spread 6.9bps tighter at 232.5bps