After a risk-off Asian session when....>

BOND SUMMARY: After a risk-off Asian session when markets continued to focus on

a no deal Brexit and GBPUSD continued its descent, we have seen some retracement

through the European session. The generic gilt futures contract opened at its

highest level since August 2016, but fairly quickly retraced some of these gains

before starting to head higher once more.

- USTs and Bunds have moved a little higher on the day, but remain below the

highs of yesterday.

- It is a heavy day of issuance today with Italy having already sold BTPs and

CCTs, Germany selling Schatz and Belgium selling bills.

- The morning's data has also seen German state inflation a bit stronger on the

M/M but a bit weaker on the Y/Y than expected. We look ahead to the German

national print around 13:00BST. In the US housing, confidence and PCE data are

all due for release.

- TY1 futures are up 0-1 today at 127-15+ with Bund futures up 0.03 at 174.49

and gilt futures up 0.11 at 132.58.