It has been an eventful start to the...>

BOND SUMMARY: It has been an eventful start to the quarter with core fixed

income seeing a significant sell-off.

- The sell-off started as stocks rallied on the back of some decent buying of

equities, but then moved further. The sell-off continued as the BoJ said that it

may stop buying longer-dated debt over 25 years. The Italian budget has also

been seen as a positive while the probability of a no deal Brexit continues to

decline in betting markets.

- Economic data this morning contrasted with the moves seen in fixed income. PMI

data from the Scandies, Spain and Italy all disappointed slightly with minimal

revisions to the preliminary data from the core Eurozone and the UK PMI seeing a

better than expected headline print but disappointing details. There will be

focus on the ISM later, particularly after the disappointing MNI Chicago PMI

yesterday.

- TY1 futures are down -0-18 today at 129-24 with Bund futures down -0.80 at

173.45 and Gilt futures down -0.76 at 133.48.