Global bonds are well off from.........>

BOND SUMMARY: Global bonds are well off from intraday highs posted earlier in

European trading, as risk assets have picked up a bid (S&P futs up 0.4%).

- Belly of U.S. curve outperforming, 2-Yr yield down 2bps at 1.863%, 5-Yr down

2.2bps at 1.8746%, 10-Yr down 0.7bps at 2.1227%, 30-Yr up 0.9bps at 2.6201%.

- European May PMI data this morning was mixed, with Eurozone composite slightly

above expectations (51.8 vs 51.6 exp.), U.K. slightly below (50.9 vs 51.0 exp.)

- Small reac to the data, with 10-Yr Bunds selling off all morning after briefly

hitting another all-time low yield (-0.228%).

- EGB periphery fairly steady, Italy / German 10-Yr spread 1.3bps wider.

- Gilt Sep futures up 19 ticks, Jun JGB futures off 1 tick.

- Euribor/ED futures strips fairly flat (+/- a tick), though Short Sterling is

up 1.5-2.0 ticks in Reds through Blues.

- Large flow in EDs include EDN9(Jul) 98.00/12 call sprd for 2.75-3 on 115k.

- Focus for rest of day on appearances from Fed`s Clarida, Bowman and Bostic, as

well as a fair it of US data (ADP employment, May ISM non-manufacturing).