An eventful few hours of trading, mostly....>

US TSYS: An eventful few hours of trading, mostly responding to Trump threats to

North Korea and then counter-threats. There are also reports that North Korea

has managed to miniaturise a nuclear weapon.

- Stockmarkets are lower, gold higher, swissie and yen are well bid. All the

usual risk-off points are being touched. And, finally core global bond markets

are well bid.

- The US 10Y note is 2bp lower relative to the NY close but is leading the

movement on the yield curve, this is the reserved for the 7Y area.

- In France a vehicle drove into a group of soldiers in what looks like a terror

attack. Fortunately, there were no fatalities.

- Cash market activity is said to be limited and activity is very much

futures-led. The CTD into the TY, the 2.5% May-24 is performing particularly

well with a 2.5bp decline in yield.

- US swap spreads are slightly wider today as the weight of heavy corporate

(BAT) supply is lifted. The 5Y swap spread hit a new 6 week high. There is a 10Y

auction later today.