A tentative rebound in German..........>

BOND SUMMARY: A tentative rebound in German industrial production has offered

little respite for markets in light of Iran's decision to cease implementing

parts of the 2015 nuclear deal. In addition, Reuters quotes sources that

indicate China has backtracked on nearly all aspects of the US trade deal.

- US TSYs have rallied with TYM9 trading up to 123-31+ up from a low of 123-26.

- There is speculation that UK PM Theresa May could soon formally announce her

departure date. Failure to do so could tip the balance in favour of the Tories

rewriting their own leadership election rules. Gilts have rallied this morning

with yields 3-4bp lower on the day. 

- The bund curve has flattened as the short-end has sold off slightly and the

longer-end has rallied. 2s30s has narrowed ~2bp.

- Italian BTP yields: 2-year 0.503%, 5-year 1.5098%, 10-year 2.609%.

- Spanish bonds have firmed this morning with yields ~1bp lower. 

- Euro$ futures are broadly 0.5-1.0 ticks lower. Euribor futures are 0.5 ticks

higher in whites, flat in reds/greens. The short sterling futures strip has

flattened with greens/blues up 4.0-5.0 ticks.