The narrative around global growth.....>

BOND SUMMARY: The narrative around global growth continues to darken, which will

keep pressure on long-end yields. 

- US TSY yields have inched lower this morning, extending yesterday's rally.

Current yield levels: 2-year 2.477%, 10-year 2.648%, 30-year 2.991%. 

- The Mar-19 JGB future trades at 152.83 in the middle of the morning range.

- Germany current account data for December was weaker than expected, with

merchandise exports and imports both stronger. Given the multi-month

deterioration in industrial activity, the market is primed for weak macro data

out of the euro area. German bunds trade in a relatively tight range. The curve

has flattened slightly with 2s30s narrowing by ~2bp.

- Italian BTPs have recovered some of yesterday's losses with yields 1.5-3.0bps

lower across the curve from yesterday's close. The 3-year benchmark is

outperforming on the day.

- It has been a quiet session in the gilt market thus far, with yields trading

near the previous close.

- Euro$ futures are 0.5-1.0 ticks higher in whites/reds and flat the greens.