Moves in core bond markets have been...>

BOND SUMMARY: Moves in core bond markets have been rather muted ahead of the

FOMC announcement later today.

- Eurozone data this morning has been broadly within a tenth of expectations

with French HICP a tenth higher than exp, Italian a tenth lower and core

Eurozone CPI a tenth lower than exp. Eurozone GDP was in line with expectations

while the Italian unemployment rate fell. Italian and Canadian GDP are still to

come today while ADP and the MNI Chicago PMI are also due for release ahead of

the FOMC meeting.

- The Fed are expected to cut rates by 25bp, but the focus will be on the

communication. The debate is whether it would be considered the beginning of a

lengthier easing cycle, or a true `insurance` cut. With no Statement of Economic

Projections/Dot Plot at this meeting, focus is firmly on the Statement and,

potentially more crucially, Chair Powell's press conference.

- TY1 futures are up 0-2+ today at 127-13+ with Bund futures up 0.07 at 174.62

and gilt futures down -0.08 at 132.56.