Core fixed income has been grinding....>

BOND SUMMARY: Core fixed income has been grinding higher this morning again

although moves are relatively small, following Powell's comment yesterday.

- German GDP data surprised positively this morning, avoiding the expected

technical recession printing a 0.1% Q/Q increase against an expected -0.1% Q/Q.

- UK retail sales data was disappointing, falling in October against a small

rise, although this data is fairly volatile and prone to revision.

- Looking ahead there are a number of Fed speakers due up today (Quarles,

Clarida, Daly, Williams, Bullard, Kaplan) as well as the ECB's Lane, Knot and

Villeroy (we have heard from de Guindos already this morning). PPI and claims

will be the highlights on the US economic data calendar.

- TY1 futures are up 0-5 today at 129-01+ with Bund futures up 0.21 at 170.57

and Gilt futures up 0.17 at 131.55.