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Global bond and rate markets are.......>

BOND SUMMARY
BOND SUMMARY: Global bond and rate markets are higher amid end-week trading
activity picking up following a fairly quiet few days.
- Short Sterling futures have rallied, with longer-dated contracts up 3-4 ticks
on US President Trump`s statements that a UK-US free trade deal may prove
impossible under PM May`s Brexit plan.
- German Bunds have likewise rallied sharply this morning, with Trump`s comments
possibly the catalyst. Sep8 Bund future up 33 ticks at 163.10.
- Heard German steepeners going through in futures this morning, with buying in
Schatz versus selling in Bobls. 2s5s 2.3bps flatter on the day at 32.3bps.
- Periphery EGB spreads to Bunds are little changed due to the German rally,
though Spanish, Portuguese and Italian long-end yields are each 2-4bps lower.
- The UST curve continues to flatten, with 2s10s down 0.35bps at 25.18bps and
2s30s down 0.39bps at 35.22bps, touching fresh lows for the cycle.
- A thin data calendar puts focus on the Fed`s semi-annual Monetary Policy
Report to Congress to be released at 1500GMT/1100EST. 

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