Bond futures had been trading a........>

BOND SUMMARY: Bond futures had been trading a little higher this morning but

gilt futures swiftly changed course and are now down on the day following

headlines from Andrea Leadsom that the EU were willing to reopen the withdrawal

agreement and that Angela Merkel is willing to put a five year time limit on the

Northern Ireland backstop.

- Gilt futures are down 0.17 at 127.95 with 10y yields up 0.6bp at 1.122% and 2y

yields up 0.3bp at 0.714%.

- Bund futures have retraced most of their losses and around unch at 165.36

after hitting a low of 165.11 following the headline. 10y Bund yields are down

0.3bp at 0.004% with Schatz yields up 0.6bp at -0.573%.

- TY1 is up 0-01+ at 123-16 with 10y UST yields down 0.1bp at 2.513% and 2y

yields down 1.0bp at 2.352%.

- It is a busy day for issuance with the UK and Austria are selling bonds,

Germany selling linkers and Spain, Belgium, Slovenia and Malta all selling

bills. There are no top tier data releases with tomorrow's EU Summit and ECB

meeting the main market focus.