It has been a relatively quiet.........>

BOND SUMMARY: It has been a relatively quiet morning in bond markets with Brexit

and US-China headlines the main highlights.

- After more talks yesterday between May and Corbyn's teams, Theresa May has

formally requested an extension to Article 50 to June 30 with the condition that

the UK prepares for EU elections. The EU is yet to formally agree but overnight

headlines suggest a "flextension" of a year with an opportunity for the UK to

leave early if a deal is agreed.

- US-China headlines suggest no deal is ready but a "new consensus" on trade is

close to being agreed. No date has yet been set for Trump and Xi to meet.

- TY1 is down 0-05 to 123-12+ with 10y UST yields up 1.1bp to 2.258% and 2y

yields tp 1.5bp to 2.352%.

- Bund futures are down -0.25 today at 165.27 with 10y Bund yields up 1.6bp at

0.009% and Schatz yields up 0.1bp at -0.579%. Periph spreads are tighter on the

day led by Greece where the next disbursal of funds has been released.

- Gilt futures are down 0.47 to 127.85 with 2y yields up 4.1bp to 0.731% and 10y

yields up 4.7bp to 1.131%.