Global bond yields are lower almost....>

BOND SUMMARY: Global bond yields are lower almost without exception (Italy) as

an eventful week begins to draw to a close.

- There has been a bit of a flight to quality this morning, with US Treasuries,

JGBs, Bunds and Gilts all rallying. 10-Yr UST yields are 1.3bps lower at 2.853%,

with the curve bull flattening as 2-Yrs have dropped 0.8bps at 2.608%.

- German curve has also bull flattened, the 10-Yr Bund outperforming with a

2.2bps yield drop to 0.298%. A close at this level would be lowest since Jul 9.

- JGBs had a strong session, with the Sep8 future up 12 ticks to 150.44.

- Gilts continue to rally, with the Sep8 future up 26 ticks at 123.97.

- Rate futures strips are also rallying, with the biggest mover being

Eurodollars, which are 2 ticks higher in Green and Blue contracts.

- Italian BTPs are a standout red in a sea of green, with the 10-yr yield up

0.7bps at 3.124% after earlier rallying to 3.093%.

- Quiet end to the week data-wise, but renewed downside in Turkish lira this

morning puts an S&P ratings publication on Turkey this evening into focus.