It has been a risk-off start to the....>

BOND SUMMARY: It has been a risk-off start to the morning, helping gilts and

Bunds to move a little higher on the open, with headlines that China is not

interested in pursuing trade talks with the US in the short-term.

- The data calendar continues to remain light with the final print of Eurozone

CPI the highlight. Politics are again likely to be the biggest driver of

European bond markets today.

- Theresa May's time as PM appears to be coming to a close irrespective of

whether her Brexit deal passes or not, and with Labour expected to pull out of

talks soon there appears little chance it will pass.

- BTP-Bund spreads have seen some big moves over the past few days following

comments from Salvini ahead of the EU elections but are largely unch today.

- Gilt futures are up 0.11 today at 128.72 with 10y yields down -1.5bp at 1.058%

and 2y yields down -1.1bp at 0.699%.

- Bund futures are up 0.10 today at 167.05 with 10y Bund yields down -1.0bp at

-0.106% and Schatz yields down -0.3bp at -0.656%. BTP futures are up 0.03 today

at 129.67.