Prospects of a US-China trade deal.....>

BOND SUMMARY: Prospects of a US-China trade deal received a slight boost on

Sunday after the Chinese government indicated it would seek to improve

protection for intellectual property rights.

- Core govvies have started the session on a weaker footing.

- UST yields are broadly 1-2bp higher. TYZ9 trades 129-10+. The data calendar is

relatively light today, with the main releases being the Chicago Fed Natural

Activity Index and the Dallas Fed Manufacturing series. 

- The UK Conservative party published its election manifesto on Sunday after the

Labour party received a relatively lukewarm reception to its policy

announcements earlier in the week. Gilts sold off from the open, but have since

recouped losses. Trading is now close to unch on the day.

- Bund yields are a touch higher. Current yield levels: 2-year -0.641%, 5-year

-0.585%, 10-year -0.354%, 30-year 0.163%.

- Italian BTPs have been the regional outperformer with yields broadly 2-3bp

lower with the curve trading flat.