Global bonds are on the backfoot.......>

BOND SUMMARY: Global bonds are on the backfoot this morning, partly retracing

some of the moves higher following the dovish ECB meeting yesterday. And partly

reflecting (slight) relief that the UK is not facing a no deal Brexit and that a

deal has been agreed to keep the UK in the EU until Halloween.

- Final French and German CPI prints were in line with the flash estimates. The

focus will now switch to US PPI ahead of a number of Fed speakers including

Clarida, Williams, Bullard, Kashkari and Bowman.

- TY1 is down 0-01 to 123-24+ with 10y UST yields up 0.9bp to 2.474% and 2y

yields up 0.6bp to 2.327%.

- Bund futures are down 0.07 to 165.82 with 10y Bund yields down 0.1bp to

-0.0264% and Schatz yields up 0.3bp at -0.585%.

- Gilt futures are down 0.29 to 128.01 with 2y yields up 1.8bp to 0.717% and 10y

yields up 2.1bp to 1.119%.

- Peripheral spreads are a little tighter on the day led by GGBs and PGBs.