Oil is the big driver of fixed.........>

BOND SUMMARY: Oil is the big driver of fixed income markets this morning

following the attack on Saudi oil infrastructure. The attacks are estimated to

affect roughly 5% of oil output globally. At the time of writing, front-month

Brent futures were just over $5 higher on the day (a little under 9% higher on

the day). However, this is lower than the 19.5% increase seen at the open.

- All core fixed income markets are lower today with 10y UST yields down 8.1bps,

10y gilt yields down 5.4bps and 10y Bund yields down 4.3bps.

- Other than the immediate moves in oil, markets are looking ahead to a number

of central bank policy decisions this week with the BoE, SNB, Norges Bank, BoJ

and most importantly the FOMC all due to announce policy this week. The Fed are

expected to cut rates by 25bp and there will be focus both on the dot

projections, but also the tone of the press conference.

- In the UK this week, the main focus will be on tomorrow's Supreme Court

decision on whether the government's decision to prorogue parliament was legal.

- TY1 futures are up 0-17+ today at 129-04 with Bund futures up 0.67 at 173.11

and Gilt futures up 0.60 at 131.76.