Following US President Donald..........>

BOND SUMMARY: Following US President Donald Trump's renewed tariff threat,

Chinese Vice Premier Liu He has indicated that he will visit the US for trade

talks on May 9-10. US TSY yields initially spiked higher on the news. TYM9

trades at 123-23, 4 ticks off the low.

- There has been limited movement in EGBs thus far. Current bund yield levels:

2-year -0.597%, 5-year -0.426%, 10-year 0.006%, 30-year 0.657%.

- The BTP curve has steepened slightly on the back of the short-end rallying.

2-/3-/5-year BTP yields are down ~2bp.

- The Daily Telegraph reports that Conservative MPs will initiate plans this

week to oust PM Theresa May if she agrees a Brexit deal with Labour. Given that

party rules prevent another leadership contest until December and the PM has

steadfastly refused to step down until a deal is done, it is difficult to see

how May can be replaced in the near-term without triggering a general election,

which most Tories don't want. Gilt yields are 1-2bp lower on the day.

- Euro$ futures trade flat to +/- 0.5 ticks in whites/reds and up 1.0-1.5 ticks

in greens/blues. Euribor futures are broadly flat/0.5 ticks higher.