After seeing risk rally over the.......>

BOND SUMMARY: After seeing risk rally over the past few days, equities have come

off their highs somewhat. Core bonds ground to their lows either generally

around the European open before beginning to head a little higher.

- At the time of writing TY1 futures are up 0-5 today at 129-02+ with Bund

futures down -0.15 at 170.38 and Gilt futures down -0.11 at 131.21.

- Economic data this morning has generally been positive, with the Italian

services PMI surprising to the upside and an upward revision to the German and

Eurozone services PMIs relative to the flash.

- There is little on the calendar to get excited about this afternoon, with the

highlights the Fed speakers - Evans, Williams and Harker are all due to speak.

- In an otherwise quiet session, focus will begin to turn to the BoE MPR and

press conference tomorrow where there is a chance of a dissent in favour of

easing policy. The focus will be on whether the Bank maintains its "limited and

gradual" rate hike guidance.