It's been a fairly quiet start to......>

BOND SUMMARY: It's been a fairly quiet start to the day today with Bunds

reversing some of yesterday's weakness but Treasuries and gilts recovering from

some earlier weakness to be little changed on the day.

- German state CPI data has largely been in line with expectations for the

national data which is due out later today. We are also due to receive US

durable goods data for April and the second print of Q1 US GDP. This all

precedes the weekly claims data which are expected to see initial claims rise at

a slower pace (but still around the 2 million mark) while continuing claims will

be closely watched as most analysts see a small increase but one analyst in the

Bloomberg survey sees a slight tick lower. A lower claims number than last week

would be a surprise to the market in our view with few positioned for it.

- Later today we will also hear from the Fed's Williams and Harker.

- TY1 futures are up 0-0+ today at 139-04+ with Bund futures up 0.13 at 172.20

and Gilt futures down -0.13 at 137.24.