Markets are in rebound mode as trade...>

BOND SUMMARY: Markets are in rebound mode as trade talks between the US and

China ended on a relative upbeat note, which has lifted heavily depressed market

sentiment. 

- There has been little direction in USTs so far. Current yield levels 2-year

2.592%, 10-year 2.739%, 30-year 3.021%.

- The German bund curve has steepened slightly with the 2s30s spread widening to

144.5bps from a low of 142.9bps.

- The longer end of the French OAT curve has sold off and the curve has

steepened.

- Italian BTPs sold off shortly after the open but started to pare losses from

around 0900GMT. The 2-year benchmark has underperformed the curve with the yield

up 1.2bps on the day.

- Despite UK PM Theresa May losing a parliamentary vote yesterday which is seen

as a win for Remainer MPs looking to prevent a 'no-deal' Brexit, the gilt market

has been relatively quiet.

- Euro$ and Euribor futures are down 0.5-2.0 ticks.