Signs of progress on US-China trade....>

BOND SUMMARY: Signs of progress on US-China trade talks have provided a lift to

equities. US President Donald Trump's decision to extend the March 1 tariff

deadline has been a notable positive shift, but Trump's somewhat erratic

approach to economic policy could yet scupper a trade truce.

- US TSY yields are ~1-2bp higher on the day, with little change in the curve.

Current yield levels: 2-year 2.504%, 10-year 2.672%, 30-year 3.030%.

- The Mar-19 JGB futures trades at 152.85 in the middle of the day's range.

- Bunds have sold off slightly, with the longer-end underperforming. The 2s30s

spread is 1bp steeper on the day.

- Italian BTPs have rallied sharply with the 3-year yield down 10.7bps from the

last close and outperforming the curve. 

- Gilts opened weaker but have subsequently gained a firmer footing. Current

yield levels: 2-year 0.752%, 10-year 1.166%, 30-year 1.697%.

- Euro$ futures are 0.5-2.0 ticks lower with the strip steepening slightly.

Euribor futures are 0.5-1.5 ticks lower.