It has been a less eventful session....>

BOND SUMMARY: It has been a less eventful session so far compared to earlier in

the week. Simmering trade tensions and the Iranian escalation are supporting

USTs, with yields 2-3bp lower. TYM9 trades at 124-00 and near the top of the

day's range. 

- The EU has stated that it remains committed to the Iran nuclear deal, but will

not accept ultimatums.

- BTPs have sold off sharply this morning with yields 5-6bp higher. Concerns

about Italy's budget are once again bubbling to the surface after EC forecasts

published yesterday suggest that the deficit will surpass EU rules. At the same

time, Blackrock is pulling out of the Carige bank rescue, which raises the

possibility of a state bailout.

- Bunds opened stronger this morning and the very long-end has marginally

outperformed.

- Gilts have also rallied slightly. Current yield levels: 2-year 0.720%, 5-year

0.855%, 10-year 1.1199%, 30-year. Lib Dem leader Vince Cable repeats his call

for a 2nd referendum, emboldened by his party's recent local election success.