European bonds are on the front foot...>

BOND SUMMARY: European bonds are on the front foot Friday post-ECB meeting and

with UK PM May apparently achieving little on the Brexit front in Brussels.

- Mar 19 Bund futures up 28 ticks at 163.15, as eurozone Dec flash PMIs

disappointed across the board, bolstering the case for ECB dovishness. 

- 2-Yr German yield down 2.1bps at -0.603%, 10-Yr down 2.8bps at 0.257%.

- Italian BTPs are not quite keeping pace with Bunds, with 2-Yr yield down

0.7bps at 0.538% and 10-Yr is down 1.6bps at 2.94%.

- Mar 19 Gilt futures down 3 ticks at 123.30, earlier trading as high as 123.53

as pessimism grew over EU concessions to the UK to boost PM May's deal.

- US Tsys are stronger but pared gains after China finance ministry announced

suspension of retaliatory 25% tariffs on US cars for 3 months beginning Jan 1.

- Mar 19 T-Note futures up 8.5/32 at 120-16, having traded in a range of 120-07

to 120-19. The 2-Yr yield is down 3.5bps at 2.7268%, 5-Yr is down 3.9bps at

2.7154%, 10-Yr is down 3.6bps at 2.8769%, and 30-Yr is down 3.3bps at 3.1363%.

- JGBs strengthened on risk-off flows early, centering on weak Chinese data;

Mar19 future up 13 ticks at 152.15.