Bunds and USTs moved lower overnight...>

BOND SUMMARY: Bunds and USTs moved lower overnight as the market digested

Trump's optimism on getting a Phase One US-China trade deal agreed, exit polls

showed a strong Tory majority in the UK General Election (later confirmed) and a

larger than expected Fed repo operation announcement. Gilts opened moved sharply

lower on the open.

- However, through the morning these moves have partially retraced.

- Gilt futures opened at 130.45 but not stand at 130.85 (down -0.43 from

yesterday's close). 10y yields are up 3.7bp at 0.855% and 2y yields up 2.0bp at

0.597%.

- TY1 futures are down -0-1 today at 128-11+ with 10y UST yields up 0.1bp at

1.894% and 2y yields down -1.7bp at 1.643%.

- Bund futures are down -0.37 today at 171.38 with 10y Bund yields up 3.0bp at

-0.241% and Schatz yields up 0.8bp at -0.625%.

- Peripheral spreads have also tightened with 10y BTP spreads 5.9bp tighter,

Spanish Portuguese and Irish spreads all 3-4bp tighter and semi-core spreads

also tighter on the day.