Bonds are broadly on the back foot,....>

BOND SUMMARY: Bonds are broadly on the back foot, amid modest relief regarding

the lack of escalation in US/China trade rhetoric over the weekend, evident in

safe-haven yields ticking higher (albeit on thin trading volumes).

- German 10 year Bund yields are up 2.1bps at 0.312%, with the curve steeper as

2s up just 0.7bps and 30s up 2.2bps. Similarly, Japanese JGBs are a touch

weaker, with 10-year yields rising 0.7bps to 0.040%.

- US Tsys continuing to weaken following the initial post-nonfarm payrolls rally

Friday. 10-year yields up 2.6bps at 2.847%, with the curve making a parallel

shift up as 2s and 5s yields up a similar magnitude.

- UK Gilts are weaker as markets digest the potential for a softer Brexit, with

Brexit Secretary David Davis` resigning Sunday over the proposed customs plan

with the EU. 10-year Gilt yields up 3.5bps to 1.300%. Overall, the curve out to

10 years is modestly steeper, with 2-years rising 2bps.

- The Short Sterling strip is steeper with White contracts flat and Blues off 4

ticks. Euribor and Eurodollar off 2.0-2.5 ticks in Greens and Blues.