Renewed concerns over global...........>

BOND SUMMARY: Renewed concerns over global economic headwinds have underpinned

equity weakness and fuelled the bid in safe haven bonds. The US and China appear

to be digging in deeper over the trade spat as Beijing indicated it could use

rare earths as leverage in the dispute, which follows the recent US clampdown on

Huawei. 

- US TSY yields are 3-4bp lower on the day. TYM9 trades at 125.22+ near the top

of the day's range.

- The campaign to succeed UK PM Theresa May has heated up as leadership

contenders have stated their positions with respect to no-deal Brexit. Betting

odds have narrowed on the more strident euroscetpic candidates. Gilts have got

off to a strong start with yields ~1-2bp lower. The 30-year benchmark has

underperformed. 

- German bunds trade close to unch on the day. Current yield levels: 2-year

-0.652%, 5-year -0.557%, 10-year -0.171%, 30-year 0.473%.

- The Euro$ futures strip is broadly 3.0-5.5 ticks higher, while Euribor futures

are up 0.5-1.5 ticks.