Overnight, positive headlines on.......>

BOND SUMMARY: Overnight, positive headlines on US/China trade came

simultaneously as market opened, instigating a sharp-sell off in all FI

instruments, with JGBs, Aussie, KTB and USTs all under pressure.

- The long-end has continued to underperform, steepening curves. China

euro-denominated issuance (first in 15 years) contributing to Bund weakness.

- Pretty thin on data this morning; UK Markit Services/Composite PMI at 0930GMT.

** Latest European levels:

* Dec Bund futures (RX) down 49 ticks at 170.5 (L: 170.39 / H: 170.95)

* Germany: The 2-Yr yield is up 1bps at -0.639%, 5-Yr is up 1.8bps at -0.583%,

10-Yr is up 3.4bps at -0.317%, and 30-Yr is up 4.1bps at 0.234%.

* Dec Gilt futures (G) down 20 ticks at 131.63 (L: 131.44 / H: 131.68)

* UK: The 2-Yr yield is unchanged at 0.547%, 5-Yr is up 0.6bps at 0.508%, 10-Yr

is up 0.7bps at 0.732%, and 30-Yr is up 0.9bps at 1.236%.

* Dec BTP futures (IK) down 23 ticks at 143.58 (L: 143.54 / H: 143.88)

* Italy / German 10-Yr spread 1.8bps tighter at 132.8bps

* Dec OAT futures (OA) down 45 ticks at 167.12 (L: 167.03 / H: 167.55)