Did bonds go too far too fast? That....>

BOND SUMMARY: Did bonds go too far too fast? That is the question fixed income

investors are asking themselves today as bonds continued to move off their highs

through most of the North American afternoon session yesterday. Some support was

found in the Asian session as the PBOC set the USDCNY central parity rate above

7 for the first time since May 15, 2008. Gilts and EGBs moved higher on the open

to reflect moves seen yesterday in USTs.

- It is another light day for economic data, with trade talks likely to be the

focus once again. BTPs are underperforming on further comments from Salvini last

night, increasing the chances of elections possibly as soon as the second half

of October (maybe even around the Brexit date).

- TY1 futures are down -0-11 today at 129-26 with 10y UST yields down -1.0bp at

1.730% and 2y yields down -0.9bp at 1.599%.

- Bund futures are down -0.43 today at 176.93 with 10y Bund yields up 2.0bp at

-0.563% and Schatz yields up 1.6bp at -0.846%.

- Gilt futures are down -0.45 today at 133.98 with 10y yields up 3.4bp at 0.518%

and 2y yields up 2.6bp at 0.472%.