The big story in bond markets this.....>

BOND SUMMARY: The big story in bond markets this morning has been a MOFCOM press

conference in which it was said that China and the US have agreed to remove some

tariffs when phase 1 of the trade talks are complete - and to remove the tariffs

phase by phase. Note that this is not confirmation that phase 1 is complete but

is a positive step none the less.

- TY1 fell immediately on the headlines to 128-30+ and after drifting a little

higher has fallen back to its lows of the day and now sits at 128-30.

- Gilts and Bunds have followed USTs lower.

- Today will see the BoE announce its policy decision and unveil its rebranded

Monetary Policy Report (replacing the Inflation Report). There will be focus on

whether any MPC member votes for immediate easing and whether the "limited and

gradual" rate hike forward guidance remains intact. There is very little else on

the calendar today outside of US weekly claims data and a speech from the Fed's

Kaplan.

- TY1 futures are down -0-12+ today at 128-30 with Bund futures down -0.28 at

170.39 and Gilt futures down -0.14 at 131.48.