Markets are on a risk-off footing......>

BOND SUMMARY: Markets are on a risk-off footing with oil and equities moving

lower, leading bond markets higher.

- Treasuries are seeing the biggest moves in core fixed income with 10y yields

down 6.9bp at writing at their lowest levels for a week. Bund yields have moved

back below -0.40% down 4.5bp on the day. Gilts are the exception with 10y yields

still trading above yesterday's lows despite a GBP3.0bln auction of the

benchmark this morning.

- In line with risk off sentiment EGB peripheral spreads have widened out.

Greece has seen the biggest widening with the 7-year GGB syndication expected to

price today.

- There are a number of data releases from the US today. Retail sales has a

survey period towards the end of the month and will provide a clearer picture of

the hit to the consumer while industrial production and the Beige Book will also

garner more attention than usual.

- TY1 futures are up 0-16+ today at 138-23+ with Bund futures up 0.44 at 171.98

and Gilt futures up 0.25 at 136.77.