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

BOND SUMMARY: It has been a pretty quiet morning in bond markets with core bond

markets trading a little softer on the day.

The key data release the German IFO with expectations worse than consensus and

the current assessment better than expected. Following yesterday's poor PMI

prints, the expectations component was not far enough below consensus to see

much of a market move.

- Schatz opened on the front foot but at the time of writing yields were within

0.3bp of yesterdays close at -0.581% while 10y Bund yields are 0.2bp higher at

0.182%.

- Treasuries rallied into the close last night but a risk on Asian session saw

yields rises. The curve has bear flattened with 2y yields up 0.9bp at 2.573% and

10y yields at 2.721%.

- In the UK, the pound reacted to a Sun story which suggested the DUP would back

May's deal if the Irish backstop was time limited (something the EU have

repeatedly ruled out) but FI markets have largely ignored this. 2y gilt yields

are little changed at 0.769% and 10y yields up 0.3bp at 1.267%.