After what had been a fairly quiet.....>

BOND SUMMARY: After what had been a fairly quiet morning, bonds spiked lower on

comments from Mnunchin that a trade deal with China was 90% done. TY1 hit a low

of 127-24, before retracing retracing most of the headline-driven move when

Mnunchin clarified that talks had hit a stumbling block. USTs, gilts and Bunds

all remain a little weaker on the day.

- Economic data has been largely uneventful this morning with consumer

confidence a little weaker in Germany but a little stronger in France. The

highlight in the US will be durable goods, with the ex-transportation the key

given that Boeing's orders have been severely impacted by the 737 issues.

- Four BoE MPC members are appearing before the Treasury Select Committee re the

May Inflation Report while for the ECB, Mersch is due to speak at 10:00BST.

- TY1 futures are down -0-8+ today at 127-27+ with 10y UST yields up 3.6bp at

2.022% and 2y yields up 5.5bp at 1.761%. Bund futures are down -0.36 today at

172.52 with 10y Bund yields up 2.0bp at -0.312% and Schatz yields up 0.4bp at

-0.742%. Gilt futures are down -0.13 today at 130.72 with 10y yields up 1.1bp at

0.803% and 2y yields up 0.9bp at 0.580%.