Bonds have continued to move higher....>

BOND SUMMARY: Bonds have continued to move higher this morning following on from

yesterday's dovish Fed decision where forecasts and dots were downgraded and an

end to balance sheet runoff in September was announced.

- TY1 is up 0-05+ on the day to 123-18 and 10y UST yields are down 1.4bp at

2.512%. This leaves the continuation contract of the future at its highest and

10y yields at their lowest levels since January 2018. 2y yields are down 0.9bp

at 2.388%, at present remaining above the lows seen in January 2019 of 2.3705%.

- Bund futures moved higher on the Fed announcement yesterday but saw more

follow through as the cash market opened this morning. RX1 is up 0.46 to 164.71.

10y Bund yields are 3.5bp lower at 0.049% with Schatz yields down 0.7bp at

-0.539%.

- Gilt futures moved 0.49 higher, largely on the open, and now trade at 128.16

with 2y yields down 3.4bp at 0.708% and 10y yields down 5.6bp at 1.101%. The BoE

are expected to leave rates unch today, with the meeting overshadowed by Brexit.

- EGB peripheral spreads are tighter on the day, with the exception of Greece.