Bonds have traded in choppy fashion....>

BOND SUMMARY: Bonds have traded in choppy fashion so far Thursday in tight

ranges, with higher quality instruments underperforming (though Tsys are flat).

- The Dec 18 T-Note future is unchanged at 118-260, having traded in a range of

118-245 to 118-295. Short end of the Tsy curve underperforming, 2-Yr yield up

1.2bps at 2.8662, 10-Yr is up 0.7bps at 3.1176%. US I.P. data up at 1415GMT.

- UK Gilts have pared some of Thursday's Brexit-related rally, Dec18 future off

24 ticks at 122.94; long end underperforming (30-Yr up 3.7bps at 1.965%).

- Attention now on a potential no-confidence vote by Conservatives in PM May.

- Core EGBs a little weaker; Dec 18 Bund future is down 20 ticks at 160.61,

trading within a tight range of 160.54-160.73 so far.

- ECB Pres Draghi sounded a little cautious on the economic outlook in a speech

earlier, but reinforced that risks remained 'broadly balanced'.

- Despite continued standoff between Rome and Brussels, Italian BTPs are

stronger, Dec18 future up 59 ticks at 121.93; 10Y spread down 6.6bps.

- JGBs are a little weaker, Dec18 future off 3 ticks at 150.92.

- ECB Weidmann speaks at 1300; Fed's Evans speaks at 1630GMT.