Equities are down a little while.......>

BOND SUMMARY: Equities are down a little while core bonds are higher and

peripheral spreads wider in a slightly risk off tone to trading so far today.

- PMIs have been the main focus of the day so far with manufacturing and

services releases coming in above expectations for France, Germany, the Eurozone

and UK. Composite PMIs have also beaten expectations except in France. We note

that all of the PMIs are still comfortably below 50 which means that economies

are likely to have continued to contract in May, even compared to the low levels

of activity in April. However, it is also worth remembering that the PMIs give

no magnitude of deterioration. In response to the survey a purchasing manager

could have answered the sub-category deteriorated if only marginally, or if it

deteriorated to a much greater extent. However, it looks as though we will be at

least waiting for June for any potential marginal increases in output.

- Later today the highlights will be comments from the Fed's Williams and

Clarida. They are both influential members who we have heard little from

recently. Fed Chair Jay Powell is unlikely to give much away as he gives

welcoming remarks at a Fed Listens event.