It has been a fairly quiet morning.....>

BOND SUMMARY: It has been a fairly quiet morning in bond markets with a mild

risk-on tone seeing core fixed income move a little lower.

- After spreads widened yesterday, there has been focus on BTPs again today with

spreads reversing some of their moves this morning. UniCredit have suggested

that the moves wider yesterday were driven by profit taking in a market which

has been dominated by buyers in recent months.

- Economic data has failed to be market moving today with the Eurozone trade

balance largely in line with expectations and the final print of Eurozone CPI

revised down from 0.2%M/M to 0.1% while the Y/Y print was in line with the flash

at 0.7%.

- Looking ahead US retail sales and industrial production will be the highlights

of the day while US-China trade headlines will still be drivers for the market.

- TY1 futures are down -0-8 today at 129-03 with Bund futures down -0.05 at

170.94 and Gilt futures down -0.14 at 131.71.