Bonds are trading weaker this..........>

BOND SUMMARY: Bonds are trading weaker this morning on the back of better than

expected Chinese data which saw exports better than expected and total social

financing at CNY2.86trn vs MNI median of CNY1.90trn. The lending data has been

the main talking point of the session.

- TY1 is down 0-06 at 123-12 with 10y UST yields up 2.7bp at 2.524% and 2y

yields up 1.7bp at 2.371%.

- Bund futures are down 0.37 at 165.20 with 10y Bund yields up 2.6bp at 0.016%

and Schatz yields up 2bp at -0.575%.

- In line with the risk on sentiment, European peripheral spreads have tightened

this morning.

- Gilt futures are down 0.18 at 127.48. 10y yields are up 1.7bp at 1.167% with

2y yields up 1.3bp at 0.751%.

- There may be a number of comments from central bankers attending the Spring

meetings of the IMF in Washington with Praet, Carney and Lane all due to appear

on panels. On the data front US import/export prices and Michigan confidence are

the upcoming highlights.