The release of the European............>

BOND SUMMARY: The release of the European Commission's latest economic forecasts

this morning has triggered a market reaction. The eurozone growth forecast for

2019 has been cut to 1.3% from 1.9%.US/UK/Core EGB yields have taken a leg

lower, while peripheries are under a little pressure. 

- European Commissioner for Economic and Financial Affairs Pierre Moscovici

added that the slowdown in 2019 will be worse than expected and cited softer

Chinese growth and the risk of US fiscal tightening as contributing factors.

-  US TSY yields are 1-2bps lower after the EC report was released. Current

yield levels: 2-year 2.5039%, 10-year 2.6752%, 30-year 3.0153%.

- The Mar-19 JGB future trades at 152.62 in the middle of the day's range.

- Similar to USTs, bund yields are 1-2bps lower since 1000GMT. The long-end has

outperformed slightly with 2s10s/2s30s trading down 1-2bps.

- French OAT yields are trading at the lows of the day. 

- Gilt yields are broadly 2-3bps lower across the curve.

- Euro$ futures are 0.5-3.5 ticks higher with greens/blues outperforming, while

Euibor futures are 3.0-4.0 ticks higher in greens/blues.