After yesterday's sell-off, today's....>

BOND SUMMARY: After yesterday's sell-off, today's fixed income market has been a

lot calmer. EGBs finished the year yesterday and then Treasuries retraced some

of their losses after Europeans had left the office. Today, USTs have moved

lower once again and are underperforming gilts which are little changed on the

day.

- There is very little on the calendar of note today, with Cash Schiller house

priced and the Conference Board Consumer Confidence releases due for release in

the US. As gilts are only trading until 12:30GMT today, the vast majority of

European traders will be out of the office by the time of those releases though.

- TY1 futures are down -0-2+ today at 128-14+ with 10y UST yields up 2.3bp at

1.903% and 2y yields unch at 1.568%.

- Gilt futures are down -0.04 today at 130.77 with 10y yields unch at 0.863% and

2y yields down -0.4bp at 0.580%.