- Heading into this week's FOMC........>

BOND SUMMARY: - Heading into this week's FOMC meeting US TSYs have rallied, with

the 2-year yield edging down to 2.725% from a high of 2.741%.

- EGBs remain bid following last week's relatively dovish ECB meeting. Having

closed the book on further asset purchases, President Draghi attempted to

balance an optimistic message on the strength of the economy with warnings over

heightened uncertainty. 

- Bunds are a touch stronger, albeit with yields holding in a tight range. The

curve has flattened with 2s10s narrowing 1bps.

- Italian BTPs rallied from the open but have since reversed the gains. The

2-year trades at 0.573% up from a morning low of 0.519%.

- Brexit headlines have been thin on the ground so far today and follows a tense

exchange between PM Theresa May and  Jean-Claude Juncker on Friday after the EC

President called the UK's demands 'nebulous'. Gilts sold off in the first hour

of trading and have since traded sideways. The curve is flat.

- Euro$ futures are broadly 0.5-1.0 ticks higher. Euribor futures are trading

mixed.