Bonds are on the front foot this.......>

BOND SUMMARY: Bonds are on the front foot this morning on the back of continued

concerns surrounding US-Iranian relations amid talks of further US sanctions on

Iran. In a quiet morning for economic data, the German IFO was a bit better for

the current assessment than expected but expectations fell more than expected,

although market reaction was limited. The only other notable data release today

is Belgian business confidence.

- On the data front this week, European inflation data will be in focus while

final prints of US and UK GDP will also be watched. In the US, the highlight

will be durable goods orders. Speeches from policymakers will be key with a

number of Fed speakers tomorrow and ECB speakers spread throughout the week.

- TY1 futures are up 0-7 today at 127-23+ with 10y UST yields down -1.8bp at

2.038% and 2y yields down -1.0bp at 1.760%.

- Bund futures are up 0.38 today at 172.45 with 10y Bund yields down -2.1bp at

-0.307% and Schatz yields down -0.3bp at -0.746%.

- Gilt futures are up 0.47 today at 130.65 with 10y yields down -3.6bp at 0.808%

and 2y yields down -3.0bp at 0.574%.