- The US observes a national holiday...>

BOND SUMMARY: - The US observes a national holiday today and markets will close

at noon on Friday.

- The Dec JGB future trades at 151.04 off the morning high of 151.12.

- German bunds have sold off since 1000BST having rallied from the open. The

2-year trades at -0.585% in line with the open, while the 10-year trades at

0.366% up from a low of 0.352%.  

- French OATs have similarly sold off and the curve is flatter on the day. The

2s10s spread has traded down to 120.3bps from 120.7bps.

- The front end of the Italian BTP has rallied strongly, causing the curve to

steepen. The 2-year benchmark yield trades at 1.079% down from a high of 1.184%,

with the 2s30s spread trading up to 295.5bps from a low of 282.3bps.

- Details of the Brexit withdrawal agreement continue to leak. Both sides have

indicated a determination to replace the Irish backstop and seek a free-trade

area. Gilts have sold off sharply from 1000BST with the 10-year yield surging to

1.422% from a low of 1.368%. Short sterling futures are off 3-4 ticks.

- The Euribor futures strip is flat/1.0 ticks higher