The risk-off theme of recent days......>

BOND SUMMARY: The risk-off theme of recent days appears to have subsided with

the US dollar giving up some gains, equities regaining posture and oil

stabilising. The shift in the fixed income space is less decisive with USTs and

core/periphery EGBs bid, alongside weaker trading in gilts. 

- USTs have traded firmer and the curve has bull flattened. Cash yields are

broadly l-2bp lower.

- Gilts have weakened, albeit with price action relatively contained. The Sep-20

gilt future has traded in a narrow range (137.63-138.82) so far this morning and

last printed 137.66.

- Bunds have inched higher, but remain close to yesterday's closing levels.

- BTPs have rallied with yields 1-2bp lower and the curve a touch flatter. Italy

earlier sold E7bn of 6-month BOTs, concluding European issuance for the week.

-Later today US PCE Deflator data and the Uni. Michigan Consumer Confidence

survey for June (final results) will be published.