Ahead of this week's crunch Brexit.....>

BOND SUMMARY: Ahead of this week's crunch Brexit vote, discussions between the

UK and the EU are deadlocked. Market sensitivity to political headlines will be

particularly high this week. However, the rumour mill is also in full swing,

with the Daily Telegraph quoting 'EU sources' suggesting that the UK could be

charged Stg.1bln per month if Brexit is delayed.

- US TSYs have traded weaker this morning with long-end yields up ~2bp. Current

yield levels: 2-year 2.471%, 5-year 2.439%, 10-year 2.645%, 30-year 3.032%.

- The Jun-19 JGB future trades at 152.73.

- Gilt yields are ~1-2bps lower across the curve. The very long-end has

steepened slightly with 2s30s trading up to 95.7bps from a low of 94.7bps.

- German bunds are marginally stronger. Current yield levels: 2-year -0.545%,

5-year -0.357%, 10-year 0.058%, 30-year 0.704%.

- Italian BTPs have sold off sharply, with the shorter end leading the charge.

The 2s30s spread is 3bp narrower on the day.

- Eurodollar futures are 0.5-2.5 ticks lower with reds/greens underperforming.