- The US and China appear to have......>

BOND SUMMARY: - The US and China appear to have agreed a tentative truce on the

burgeoning trade war, which has triggered a broad-based equity rally. US TSY

yields have edged higher with the short-end underperforming. The 2-year yield

trades at 2.837% up from a low of 2.827%. 

- The March JGB future trades at 151.49 off a low of 151.10.

- Bunds sold off at the open but reversed most of the losses. The curve has

flattened with 2s10s down 2bps.

- French OATs have traced out a similar path. Despite the mounting pressure on

President Macron in the wake of violent demonstrations in Paris, there appears

to be little spillover to risk perceptions. The spread of the French vs German

10-year benchmark yields has widened by just 1bp.

- On the back of fresh rumours that the government could revise its 2019 budget,

BTPs have rallied. The 2-year yield trades at 0.707% down from 0.791%.

- Gilt yields are down 2pp across the curve, with 2s10s flat.

- Euro$ futures are 1.0-4.5 ticks lower, with most of the movement in the belly

of the strip. Euribor futures are broadly 0.5-1.5 ticks lower.