European PMIs have been the big........>

BOND SUMMARY: European PMIs have been the big mover for bond markets this

morning, with manufacturing prints across France, Germany and the rest of the

Eurozone all coming in weaker than expected and the German manufacturing PMI

falling to its lowest level in 7 years. It wasn't just the headline numbers that

were weak, however, the vast majority of the details were also very

disappointing with exports in particular a concern. These releases will not be

welcome news for the ECB ahead of tomorrow's policy announcement.

- The German curve has bull flattened with 10y Bund yields currently sitting

around 4bps above their all time record low. Peripheral curves have seen smaller

moves however, with 10y spreads to Bunds generally tightening on the back of ECB

easing expectations. Gilts and USTs have followed Bunds higher.

- Bund futures are up 0.32 today at 174.23 with TY1 futures up 0-4+ at 127-16

and gilt futures up 0.06 today at 132.14. BTP futures are up 0.77 at 139.89.