Risk-on has been the tone this.........>

BOND SUMMARY: Risk-on has been the tone this morning with equities moving higher

and bonds selling off. PMIs this morning have generally been in line or better

than expected.

- TY1 is down 0-06 at 124-01 with support at last week's low (from Mon) of

123-28 holding firm for now. 10y UST yields are up 2.8bp to 2.433% while 2y

yields are up 2.6bp at 2.286%.

- Bund futures touched lows of 165.68 in the aftermath of the better than

expected UK manufacturing PMI and at the time of writing are 0.34 lower at

166.00. 10y Bund yields are are 2.5bp at -0.045% while Schatz yields are up

0.2bp to -0.600%.

- Gilt futures opened the day on the backfoot, hitting 128.98 shortly after the

open before moving higher. Another blip lower for the UK PMI was quickly

reversed as the market focused on the stockpiling that had flattered the number.

Gilt futures are now 0.06 lower at 129.31.

- Peripheral spreads are largely unch on the day with the GGB-Bund spread the

biggest mover, tightening 2.4bp on the day.