Fixed income markets are broadly.......>

BOND SUMMARY: Fixed income markets are broadly unch or a little higher this

morning.

- Gilt futures are 0.05 ticks higher at 127.23 with 2y yields down 1.0bp to

0.742% and 10y yields down 1.2bp to 1.183%. UK employment data was much stronger

than exp, increasing 222k 3m/3m (120k exp). This puts the release in the 97th

percentile over the past 26+ years. However, with Brexit the main driver of

markets, there was very little reaction to the release, even though it came out

12 minutes early.

- TY1 futures are 0-02+ higher today at 122-29+ while 10y UST yields are 0.9bp

lower at 2.594% with 2y yields down 0.8bp at 2.444%.

- Bund futures are up 0.02 at 164.29 with 10y Bund yields 0.5bp lower at 0.078%

while Schatz yields are down 0.3bp at -0.533%.

- Peripheral yields are generally within 0.5bp of yesterday's close today.