Global bonds have been under some......>

BOND SUMMARY: Global bonds have been under some pressure this morning as we

approach year-end but there has been very little in the way of headline news to

backup the moves. The move was originally driven on the cash open of Bunds but

was extended further on the gilt open, with USTs dragged lower in the sell-off

too. Gilts are underperforming Bunds which are underperforming USTs.

- 2s10s have bear steepened but much less so for gilts than for Bunds or USTs.

- Spanish CPI and GDP were both a little weaker than expected and the US data

calendar does pick up a little more today with the release of trade, the MNI

Chicago PMI, inventories and pending home sales.

- TY1 futures are down -0-9+ today at 128-11+ with 10y UST yields up 3.6bp at

1.913% and 2y yields up 1.1bp at 1.595%.

- Bund futures are down -0.74 today at 170.87 with 10y Bund yields up 5.0bp at

-0.208% and Schatz yields up 2.3bp at -0.618%.

- Gilt futures are down -0.67 today at 131.41 with 10y yields up 5.8bp at 0.809%

and 2y yields up 4.6bp at 0.591%.