After beginning the session on the.....>

BOND SUMMARY: After beginning the session on the front foot as risk appetite

fell, the rally in bonds has stalled as equities have reversed course.

- Gilts are again the outperformers, as they were yesterday, with the market

continuing to reprice ahead of this month's BoE meeting following recent dovish

comments from MPC members.

- Issuance, particularly bill issuance has been heavy in Europe this morning.

- Looking ahead, US CPI will be the highlight of the day while we will have

speeches from the Fed's Williams and George and the ECB's Villeroy and de Cos.

- TY1 futures are up 0-3 today at 129-00+ with 10y UST yields down -0.9bp at

1.838% and 2y yields down -0.7bp at 1.579%.

- Bund futures are up 0.14 today at 170.90 with 10y Bund yields down -0.8bp at

-0.169% and Schatz yields up 0.4bp at -0.588%.

- Gilt futures are up 0.24 today at 132.25 with 10y yields down -1.9bp at 0.730%

and 2y yields down -0.7bp at 0.472%.