Bonds are on the backfoot this.........>

BOND SUMMARY: Bonds are on the backfoot this morning, led by gilts following

yesterday's Chequers meeting and today's busy Brexit schedule. An emergency

meeting cabinet meeting is being held this morning ahead of a parliamentary

debate which begins at 1700GMT with the votes on amendments due around 2200GMT

tonight.

- Gilt futures are down 0.31 this morning to 128.91 wit h10y gilt yields up

2.3bp to 1.037% with 2y yields up 2.1bp to 0.680%.

- Bunds have also been helped higher by a better than expected German IFO. Some

market participants had been looking for a miss after Friday's disappointing PMI

manufacturing. However, 10y Bund yields have moved negative again an MNI

interview with Ardo Hansson in which he stated that QE could return and that

TLTRO details may not be announced in June. RX1 is down 0.30 to 165.44 with 10y

Bund yields up 1.1bp to -0.005% and Schatz yields up 0.3bp to -0.562%. Periphery

spreads are generally unch on the day.

- TY1 is down 0-03 to 123-30 with 10y UST yields up 2.3bp to 2.462% and 2y UST

yields up 1.0bp to 2.327%.