Core fixed income has retraced off.....>

BOND SUMMARY: Core fixed income has retraced off of its lows seen yesterday. On

the day as a whole there is little movement in gilts and Bunds while Treasuries

are higher than yesterday's settlement levels.

- There has been very little to move markets this morning with a sparse economic

data calendar, although there will be more interesting data from the US today.

The trade balance and pending home sales for August, initial jobless claims and

the final print of Q2 GDP are all due for release.

- There are a number of central bank speeches on today. Draghi and Cunliffe are

due to speak, but on topics unrelated to monetary policy. From the Fed, Kaplan,

Bullard, Clarida, Daly, Kaskari and Barkin are all due to speak.

- TY1 futures are up 0-4+ today at 130-03 with 10y UST yields down -3.5bp at

1.703% and 2y yields down -0.5bp at 1.676%.

- Bund futures are down -0.03 today at 174.33 with 10y Bund yields down -1.2bp

at -0.588% and Schatz yields down -2.1bp at -0.761%.

- Gilt futures are up 0.05 today at 133.89 with 10y yields down -1.3bp at 0.518%

and 2y yields down -1.4bp at 0.437%.