Fairly minimal reaction to the.........>

BOND SUMMARY: Fairly minimal reaction to the highly anticipated Kim/Trump summit

which seemed amicable. Data also failing to provide direction, with markets

eyeing US CPI later today, and big central bank decisions later this week. 

- UK Gilts sold off sharply ahead of labour market data but have since recouped

their losses following a below-consensus AHE print. Sep Gilt future fell as much

as 35 ticks but now 9 ticks lower at 121.58.

- Bunds did the opposite, rallying going into the ZEW sentiment release but

began selling off despite poor data. Sep future rose 10 ticks early but are now

off 20 ticks at 159.54. Overall trend is down, off 150 ticks since Jun 8 high.

- US Tsys trading fairly quietly, the curve shifting up 0.4-0.5bps through to

10Y, as US CPI and Wednesday`s FOMC decision remain the focus.

- Italian spreads continue to compress as political fears abate. 10-Yr BTP and

2-Yr spread over equivalent Bunds down 6.3bps and 14.4bps, respectively.

- JGBs trading in a tight range, up 1 tick at 150.80.

- Fairly quiet day in rate futures, with Euribor off 1.0-1.5 ticks in Greens and

Blues, Short Sterling off 1.0 tick across the strip, Eurodollars flat.