An Asian session in which media........>

BOND SUMMARY: An Asian session in which media reports indicated that the US is

set to proceed with seeking the extradition of the Huawei CFO, a move which is

likely to put strains on the US-Chinese trade talks saw a risk off tone in

markets. However,  most of the European session has seen global bonds retrace

some of their gains.

- Gilts are among the biggest movers with some strong employment and wage data

showing no signs of Brexit-induced weakness in the economy. The curve has bear

steepened this morning with 2y gilt yields 1.9bp higher on the day.

- A very weak current situation reading in the German ZEW has not been enough to

reverse the move higher in yields with the curve flattening a little and the 10y

Bund 0.5bp higher on the day.

- 10y USTs have come off session highs of just under 2.74% and currently trade

around 2.757% with the yield still 2.7bp lower than Friday's close.

- Pretty quiet day on the data front with US existing home sales and Canadian

manufacturing sales the highlights. There are no Fed speakers scheduled as we

are now in the black out period ahead of the Jan30 announcement.