It's been a quiet but constructive.....>

BOND SUMMARY: It's been a quiet but constructive session so far in Europe, with

futures volumes on the light side - unsurprisingly with the U.K. out on holiday,

and traders waiting for the US employment report.

- After taking a breather late Thursday, T-Notes are rallying hard again, while

at the short end, Fed Funds futures are trading at new highs above par.

- No news flow to catalyze, if anything it's been mainly risk-on, with Liu

He-Lighthizer conversation overnight appearing to thaw frosty US-China relations

somewhat. S&P futures are off best levels but still up ~0.9%.

- Bunds trading in choppy fashion though higher, following Tsys. 

- Apart from Payrolls, attention on Lagarde comments at 0700ET/1200BST,

Eurogroup meeting after that, and Italy ratings review after hours.

- BTP spreads tighter ahead of ratings review. Latest levels:

* Jun 10-Yr futures (TY) up 5/32 at 139-14.5 (L: 139-04 / H: 139-15.5)

* Jun Bund futures (RX) up 24 ticks at 174.13 (L: 173.80 / H: 174.24)

* Jun BTP futures (IK) up 87 ticks at 137.9 (L: 137.01 / H: 138.21)

* Italy / German 10-Yr spread 7.7bps tighter at 238.7bps