European core FI has been dragged......>

BOND SUMMARY: European core FI has been dragged lower for the second consecutive

day leading into the London open by weaker US Tsys.

- Between 0600-0700GMT, TU (2-yr) US future volume has been 240% of 10-day

average. Selling across the curve. Bund and Gilt have weakened alongside.

- Why? Risk appetite up with U.S. equity futures in record territory; also

market contacts have suggested 'programme seller' of Tsys but this is

unconfirmed, so as such, very little specific to cite. 

- With fairly light data/speaker schedule today, the European highlight will be

the election debate between Corbyn-Johnson at 2000GMT.

- Latest prices:

* Dec Bund futures (RX) down 7 ticks at 170.77 (L: 170.71 / H: 171)

* Dec Gilt futures (G) down 7 ticks at 131.51 (L: 131.36 / H: 131.57)

* Dec BTP futures (IK) down 5 ticks at 141.73 (L: 141.71 / H: 142)

* Dec OAT futures (OA) steady at at 167.37 (L: 167.29 / H: 167.45)

* Dec 10-Yr futures (TY) down 4/32 at 129-6.5 (L: 129-06 / H: 129-13.5)