After big moves yesterday ahead of.....>

BOND SUMMARY: After big moves yesterday ahead of the North American open, bond

markets have been relatively quiet in comparison this morning. Bonds are pushing

higher after the disappointing German factory orders print this morning. The

year-on-year print was the worst reading since September 2009, bringing concerns

surrounding the European and global economies back to the fore. There has also

been continued focus on US-China trade talks with Trump due to meet Liu today

and headlines suggesting that the US have set a target of China fulfilling its

trade pledges by 2025.

- TY1 is up 0-04+ at 123-20+ with 10y yields 2.5bp lower at 2.50% with 2y yields

down 2.0bp at 2.315%.

- Bund futures are 0.15 higher at 165.55 with 10y yields down 1.8bp at -0.009%

and Schatz yields down 0.4bp at -0.586%.

- BTPs have continued their volatile moves with IK1 futures down 0.12. Other

peripheral spreads to Bunds are +/- 2bp today.

- Gilt futures are unch on the day at 128.45 with 10y yields down 2.0bp at

1.078% and 2y yields down 1.6bp at 0.691%.