Bonds have lacked direction so far.....>

BOND SUMMARY: Bonds have lacked direction so far this morning. TY1 is unch at

123-19 with Bund futures unch at 165.36. Gilt and JGB futures are marginally

higher up 0.10 at 128.11 and up 0.13 at 152.87 respectively.

- Geological issues are the main talking points again this morning with the main

foci is on US-China trade talks (which headlines suggest are progressing),

Brexit and continued disturbances in Libya.

- The ITV's Robert Peston has begun speculation that PM May will cancel Brexit

if the EU don't agree to an "acceptable" delay, rather than risk no deal.

- German exports disappointed once again this morning with the rest of the day

quiet on the data front, with the highlight US factory orders.

- 10y UST yields are up 0.3bp at 2.499% with 2y yields down 0.2bp at 2.337%.

- 10y Bund yields are unch at 0.007% with Schatz yields down 0.7bp at -0.575%.

- 10y gilt yields are down 0.5bp at 1.110% with 2y yields down 0.3bp at 0.712%.