Core bonds are little changed today,...>

BOND SUMMARY: Core bonds are little changed today, reversing earlier losses as

safe haven flows have been evident across markets. The USD has strengthened

while equites have been on the backfoot since the European open.

- At the time of writing bonds are seeing another move higher after headlines

that the US is considering placing additional tariffs on EU and UK imports. It

appeared as though this was a rehashing of a USTR notice that was filed last

night but had flown under the radar.

- Earlier this morning ECB Chief Economist gave an interesting speech in which

he said that further asset purchases rather than more negative rates would be a

better tool to use at this point in time.

- We have also had a weak off-the-run 4-year gilt auction this morning so focus

will be on the second auction of the day with results just after 11:30BST.

- The focus later today will be on comments from the Fed's Evans and Bullard.

- TY1 futures are flat today at 138-24 with Bund futures up 0.11 at 175.72 and

Gilt futures down -0.04 at 137.07.