Bonds moved higher shortly before......>

BOND SUMMARY: Bonds moved higher shortly before the European cash open on the

back of a tweet by the editor of the Global Times who said that "few Chinese

believe" a US-China trade deal can be agreed "soon". This has put risk on the

backfoot and equities are also lower this morning.

- Cash gilts and Bunds gapped higher on the open while futures (including TY1)

spiked higher.

- Most EGB spreads are largely unch on the day but BTP-Bund spreads continue to

whip around and are just over 2bp tighter on the day. Portuguese spreads have

widened this morning, but there seems little news, spreads are 2.9bp wider on

the day.

- Gilt futures are up 0.42 today at 132.10 with 10y yields down -4.0bp at 0.691%

and 2y yields down -1.9bp at 0.535%.

- Bund futures are up 0.50 today at 171.41 with 10y Bund yields down -3.5bp at

-0.376% and Schatz yields down -1.1bp at -0.649%.

- BTP futures are up 0.47 today at 141.90 with 10y yields down -5.2bp at 1.191%

and 2y yields down -2.6bp at 0.019%.