In a sign of the continued.............>

BOND SUMMARY: In a sign of the continued escalation in tensions between the

Washington and Tehran, the head of Iran's national security council has stated

that 13 scenarios are being considered for a response to the killing of Qassem

Soleimani. 

- Elsewhere, US General Mark Milley had to deny that American troops are being

withdrawn from Iraq following the leak of an alleged 'draft' letter.

- USTs trade close to unch on the day. Current yield levels: 2-year 1.540%,

5-year 1.607%, 10-year 1.807%, 30-year 2.283%.

- Eurozone HICP for December printed in line with consensus (1.3% Y/Y) and shows

an acceleration from the previous month (1.0% Y/Y).

- Bunds and OATs trade slightly weaker.

- UK Chancellor of the Exchequer Sajid Javid has set a date of March 11 for the

government's first budget following the December parliamentary election. Javid

has indicated that the budget will target struggling regions in the North and

Midlands.

- Gilts have sold off this morning with yields 2-4bp higher