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

BOND SUMMARY: It has been a relatively quiet session so far with tight trading

in US TSYs: TYM9 trades at 124-06, in the middle of the morning range. Earlier

on Federal Reserve Bank of St Louis President James Bullard stated that policy

rates may need to be lowered if inflation continues to disappoint.  

- UK PM Theresa May has attempted to drum up support for her Brexit deal by

allowing MPs to vote on a temporary customs union and a second referendum if

they support the bill. Both concessions do not appear sufficient to get her deal

over the line. Gilts have rallied this morning with yields 3-4bp lower.

- EGBs broadly trade close to unch on the day. The bund curve is a touch flatter

on the back of the short end trading weaker and longer-end yields inching lower.

Current yield levels: 2-year -0.627%, 5-year -0.492%, 10-year -0.070%, 30-year

0.584%.

- As the European Elections draw closer, Italian ministers continue to provide a

regular stream of headlines. Lega Nord's Matteo Salvini earlier stated that he

wants to take away 'all limits' from the EU on growth and that only a 15% flat

tax can recreate the economic boom of the 1950s/60s. BTPs have firmed slightly.