MNI: Bonds are on the front foot with momentum.......>

MNI: Bonds are on the front foot with momentum helped higher by a risk off mood

in the markets and a soft Australian CPI print, which set the tone for the Asian

session.

- Data from Europe has helped with the German IFO disappointing in all major

components with the current assessment now at its lowest level for two years.

- Today brings supply from Italy and Germany and a Cypriot syndication. The UK

DMO has increased its planned issuance for 2019/20 on the back of weaker than

expected public finance numbers while headlines suggest the Spanish treasury

will lower the net issuance target from E35b to E30b.

- Focus will be on the Bank of Canada decision with no top tier US data today.

- TY1 futures are up 0-7+ today at 123-11+ with 10y UST yields down -2.4bp at

2.542% and 2y yields down -2.3bp at 2.335%.

- Bund futures are up 0.29 today at 165.23 with 10y Bund yields down -2.1bp at

0.019% and Schatz yields down -0.1bp at -0.581%.

- Gilt futures are up 0.29 today at 127.13 with 10y yields down -3.0bp at 1.195%

and 2y yields down -2.4bp at 0.762%.