It has been a fairly slow start to.....>

BOND SUMMARY: It has been a fairly slow start to the week for fixed income

markets with core bonds moving lower through the Asian session but have been

reversing their losses since the release of the Spanish PMI manufacturing

disappointed. Expectations had been for a slight fall from 47.7 to 47.5, but the

number dropped to 46.8. Furthermore, the details were also very disappointing

with political uncertainty cited and the first mention of falling demand in

LATAM as well as "the sharpest fall in total new work" since April 2013. The

Italian PMI manufacturing fell 0.1 point in line with expectations to 47.7 while

there were 0.2 point upgrades to the flash releases from France, Germany and the

pan-Eurozone print. These did little to alter market direction though. Gilts saw

little reaction to a marginally better than expected construction PMI.

- There is little top tier data in the US today with factory orders and the

final print of durable goods due. UK parliament will elect a new Speaker today

but there is likely to be limited instant market reaction. Lagarde's speech at

19:30GMT in Berlin will be watched closely after the European close.

- TY1 -0-6 @ 129-26+, Bund futures -0.19 @ 171.23, Gilt futures -0.07 @ 132.23.