Following the positive assessments.....>

BOND SUMMARY: Following the positive assessments by US President Donald Trump

and Treasury Secretary Steven Mnuchin on the progress made in trade negotiations

with Beijing, China will arrive in Washington next week to continue discussions.

- The US TSY curve is marginally steeper with short-end yields down 1-1.5bps on

the day and the longer-end trading closer to unch. Current yield levels: 2-year

2.502%, 10-year 2.655%, 30-year 2.991%.

- The Mar-19 JGB future trades at 152.94 near the top of the morning range.

- Eurozone headline current account data for December dropped sharply

(EUR16.2bln down from EUR20.3bln).

- German bunds have rallied this morning with yields <2bp lower on the day.

Current yield levels: 2-year -0.581%, 10-year 0.091%, 30-year 0.721%.   

- Italian industrial sales/orders data for December was extremely weak and

confirmed the previously published weak production data for the same month. BTP

yields are ~ 3.5-6bp higher.

- Gilts are a touch stronger this morning, with the curve flattening slightly.

- Euro$ futures are 1.0-2.5 ticks higher. Euribor futures are up 1.0-2.0 ticks.