It has been a busy morning for data....>

BOND SUMMARY: It has been a busy morning for data with a slew of European data

released this morning, but moves in bond markets have been a little subdued.

PMIs have been mixed with a notable miss for Spanish manuf. while Eurozone

headline CPI was in line but core was a tenth lower than exp.

- TYM9 is down 14 ticks on the morning, currently trading at 121-24+, Bund

futures are down 0.10 to 165.22 and gilt futures down 0.05 to 123.00.

- In cash markets, US 2y and 10y yields are both 1.4bp higher on the day at

2.528% and 2.730% respectively. However, in Europe gilt and Bund curves have

steepened a little. 2y gilt yields are down 0.5bp with 10y yields up 1.1bp while

Schatz yields are down 0.1bp with 10y Bund yields up 0.1bp.

- Peripheral spreads are largely unch. to 1bp changed on the day.