Core bonds have been under some........>

BOND SUMMARY: Core bonds have been under some pressure this morning, although

moves have largely been limited to partially retracing yesterday's moves on

hopes of a more optimistic tilt for US-China trade talks.

- Gilts are the underperformers this morning, helped further by core CPI coming

in a tenth higher than expected at 1.7% Y/Y. There has been little reaction to

yesterday's leaders debate with Johnson still the odds-on favourite. The third

round of voting will take place today with results expected around 18:00BST

ahead of two votes tomorrow to whittle the field down to the final 2 candidates.

- The main game in town is the FOMC decision tonight, however. As we noted in

our preview, the two magic words are "patient" and "insurance", the question is

whether the Fed are able to be dovish enough to satisfy markets.

- TY1 futures are down -0-5+ today at 127-10+ with 10y UST yields up 1.8bp at

2.078% and 2y yields up 2.1bp at 1.887%. Bund futures are down -0.52 today at

172.34 with 10y Bund yields up 2.4bp at -0.297% and Schatz yields up 1.5bp at

-0.755%. Gilt futures are down -0.52 today at 130.24 with 10y yields up 3.9bp at

0.844% and 2y yields up 2.6bp at 0.594%.