The European morning session has.......>

BOND SUMMARY: The European morning session has been dominated by the extremely

disappointing German manufacturing PMI print, which followed up weaker than

expected French PMI data.

- Bund futures are up 0.53 to 165.39 with 10y Bund yields only just staying in

positive territory, down 4.0bp to 0.01%. Schatz yields are down 1.2bp to

-0.562%.

- Gilt futures have also reversed weakness seen toward the end of yesterday's

session and on the open, now trading 0.14 higher on the day at 128.84, reaching

new cycle highs once again.

- TY1 is up 0-10 on the day to 123-21+, almost reaching the highs seen yesterday

following follow through from the dovish Fed statement. 10y UST yields are down

3.9bp on the day to 2.498% with 2y UST yields down 3.0bp to 2.389%.

- EGB peripheral spreads are all a little wider this morning, with BTP-Bund 10y

spreads rising 4.5bp to 246bp.