After closing close to session highs...>

BOND SUMMARY: After closing close to session highs yesterday, Bunds and

Treasuries fell away from their highs a little towards the start of the Asian

session but have been grinding higher once again since the European open.

- The bigger story is in BTPs where 10y spreads have widened 5.5bps after

reports that leader of 5-Star Luigi di Maio is set to resign at a meeting today

which has already begun. This follows a number of defections away from 5-Star

but should have only a marginal impact on this weekend's regional election.

Other peripheral spreads are largely unchanged on the day.

- Gilts are a little higher on the day amid Chancellor Javid talking about

future trading relationships while public sector finances were slightly better

than expected but still showed a fast Y/Y growth rate.

- TY1 futures are down -0-1+ today at 129-17 with 10y UST yields down -0.3bp at

1.772% and 2y yields down -0.2bp at 1.530%. Bund futures are down -0.01 today at

172.20 with 10y Bund yields down -0.3bp at -0.253% and Schatz yields down -0.3bp

at -0.590%. Gilt futures are up 0.11 today at 133.67 with 10y yields down -1.2bp

at 0.617% and 2y yields down -1.1bp at 0.411%.