It has been a busy risk-off morning....>

BOND SUMMARY: It has been a busy risk-off morning session in fixed income,

largely triggered by Trump's announcement of a 5% tariff on Mexican imports

which will ramp up to 25% by October. Risk sentiment has not been helped by some

further soundbites from Salvini saying that a "fiscal shock" is needed.

- In addition to the negative headlines, German retail sales disappointed and

regional inflation prints have been coming in on the soft side. Italian HICP

also disappointed by a tenth on the M/M measure this morning adding to the

negative tone.

- 10y Bund yields hit a record low of -0.207% today and now trade down 2.9bps on

the day at -0.205%. - Bund futures are up 0.49 today at 168.49 with Schatz

yields down -2.5bp at -0.675%.

- Peripheral spreads generally mixed but 10y BTP-Bund spreads are 11.3bp wider.

- TY1 futures are up 0-16+ today at 126-06+ with 10y UST yields down -5.6bp at

2.158% and 2y yields down -6.1bp at 2.001%.

- Gilt futures are up 0.37 today at 130.93. The 2s10s continues to bull flatten

with 10y yields down -3.2bp at 0.864% and 2y yields down -2.3bp at 0.586%.