Global bonds are trading in line.......>

BOND SUMMARY: Global bonds are trading in line with improved risk sentiment

early Friday, with some thawing of US-China relations eyed.

- Stocks a little higher; EuroStoxx highest since mid-Dec, S&P futures up 0.3%.

- Mar 19 T-Note futures down 6/32 at 121-105, with bear flattening seen in cash

curve, 2-Yr yield is up 1.9bps at 2.583%, 10-Yr up 1.6bps at 2.766%.

- JGBs drifting lower, Mar19 future off 7 ticks at 152.44.

- The Mar 19 Gilt future is down 26 ticks at 122.26, middle of 122.15-122.41

range today; overnight headlines lending support to view that `no deal` Brexit

risks have faded since the beginning of the week. 

- Italian BTPs are outperforming among EGBs amid the risk-on move; 10-Yr spread

vs Bunds down 8.3bps at 244bps (Spain, Portugal, and Greece in 4-6 bps each).

- German yields are a little higher across the curve, amid positive risk

sentiment. 2-Yr yield is up 1.1bps at -0.579%, 5-Yr is up 2bps at -0.332%, 10-Yr

is up 2.5bps at 0.268%, and 30-Yr is up 2.8bps at 0.878%.

- Up later are U.S. Ind Prod and UMich Sentiment; Fed's Williams & Fed's Harker,

with U.S. Tsy Sec Mnuchin set to meet with U.S. President Trump.