- The US observes a public holiday.....>

BOND SUMMARY: - The US observes a public holiday today.

- JGBs are trading in a tight range and the curve is a touch flatter with the

2s10s spread ticking down to 24.4bps from 25.1bps.

- German bunds have rallied since the open with little overall change in the

curve. The 2-year benchmark yield has pushed down to -0.627% from a high of

-0.604% while the 10-year yield is down to 0.387% from 0.413%.

- French OAT yields have similarly traced a path lower with the curve

steepening. The 2s30s spread has narrowed to 207.3bps from a low of 206.4bps.

- The Italian BTP curve has flattened on the back of the short-end

underperforming with the benchmark 2-year BTP yield surging to 0.968% from

0.879%.

- Political pressure is mounting on UK PM Theresa May as rival factions both

within in her cabinet and parliament jockeying for position ahead of an expected

announcement on the official withdrawal agreement. 

- Euro$ futures are off 0.5-3.5 ticks, while Euribor futures are broadly 0.5-2.0

ticks lower.