European PMIs have been the focus of...>

BOND SUMMARY: European PMIs have been the focus of core bond markets this

morning.

- Bund, gilt and UST futures sold off on the release of better than expected

French PMI data before moves were largely reversed on the release of worse than

expected German PMI data (albeit with German manufacturing PMI ticking up

slightly vs September). The pan-Eurozone PMIs both disappointed by 0.1 with

details very disappointing as new orders fell and future expectations of output

fell to teh lowest level since May 2013.

- Brexit headlines have not been market moving today with most comments from EU

policymakers saying that an extension will be approved, but the length of the

extension remains unclear.

- The ECB is the main event of the day with the Q&A the highlight with questions

expected to focus on the internal disagreements, issue/issuer limits, tiering

and the fiscal response.

- TY1 futures are up 0-0+ today at 129-28 with Bund futures down -0.22 at 171.45

and Gilt futures down -0.07 at 132.11.