Core bond markets are a little lower...>

BOND SUMMARY: Core bond markets are a little lower today, following the recovery

in risk seen in equity markets, although they are generally a little off their

lows. There seems to be little reaction in markets to the ongoing protests in

the US (and to a lesser extent elsewhere). A less aggressive Trump speech on

Friday is seen as the catalyst for the risk-on sentiment with headlines

surrounding US-China trade relations coming back to the fore.

- In a quiet day with much of Europe on holiday, PMIs have been the highlight

with the Italian manufacturing PMI the highlight of the day - coming in above

expectations but still below 50. Later today the focus will be on the US ISM

manufacturing print.

- TY1 futures are down -0-1 today at 139-01 with 10y UST yields up 0.7bp at

0.660% and 2y yields down -0.4bp at 0.159%.

- Bund futures are down -0.47 today at 171.99 with 10y Bund yields up 2.7bp at

-0.422% and Schatz yields up 0.4bp at -0.665%.

- Gilt futures are down -0.26 today at 137.18 with 10y yields up 1.9bp at 0.201%

and 2y yields up 1.4bp at -0.36%.