Fresh sanctions on Iran do not.........>

BOND SUMMARY: Fresh sanctions on Iran do not appear to have had a material

impact on core markets this morning, potentially reflecting overstretched

valuation in the short term in light of the recent hefty compression in long-end

yields. 

- USTs trade close to unch on the day. Current yield levels: 2-year 1.728%,

5-year 1.742%, 10-year 2.012%, 30-year 2.541%. TYU9 trades at 127.31, near the

bottom of the day's range.

- Gilts are a touch firmer this morning. Conservative party election frontrunner

Boris Johnson faces mounting pressure to account for a police callout at his

address last week, but so far refuses to be drawn into questioning.

- The bund curve has flattened slightly on the back of longer-end yields inching

lower. 2s10s and 2s30s are ~1bp narrower.

- The French OAT curve has similarly flattened, ~2bp. Current yield levels:

2-year -0.669%, 5-year -0.493%, 10-year 0.013%, 30-year 0.945%. Italian BTPs

have weakened with yields 2-3bp higher.