The fixed income market is still.......>

BOND SUMMARY: The fixed income market is still adjusting to yesterday's FOMC

statement. US 10y yields fell as low as 1.9720% in the Asian session, hitting

their lowest levels since December 2016, but have partially retraced some of

this move with 10y yields now back to flirting with 2%. 2y UST yields have

remained largely range-bound this morning, trading between 1.70250-1.7387%.

- Gilts and cash Bunds opened higher this morning and have largely held steadily

with the only significant data release UK retail sales which was slightly

disappointing.

- The Bank of England will announce its interest rate decision and Minutes of

its meeting at midday BST today. A unanimous on hold decision is expected,

although we note that risks are titled to the more hawkish side. Voting is

underway in the penultimate Tory MP leadership vote, to whittle the field down

from 4 to 3 with results expected around 13:00BST. A further vote will be held

this afternoon with the final two candidates to be announced around 18:00BST.

- Continued Fed digestion is likely to overshadow the US data calendar today

with claims and the Philly Fed the key releases.