The UST curve has flattened this.......>

BOND SUMMARY: The UST curve has flattened this morning on the back of the

long-end rallying. 2s30s is ~2bp narrower. Current yield levels: 2-year 1.668%,

5-year 1.726%, 1.909%, 10-year 1.905%, 30-year 2.376%.

- In a further sign of a potential de-escalation of the global trade war,

European Commission President Jean-Claude Juncker has stated that the US will

not impose tariffs on EU autos next week as previously threatened. 

- Gilts have rallied with yields broadly 1-2bp lower on the day. 

- German trade and current account data for September came in better than

expected. Bunds opened stronger and the curve has flattened 3bp.

- The French OAT curve has similarly bull flattened.

- Next up on the data calendar will be Canadian employment, US whole inventories

and the University of Michigan Consumer Sentiment survey this afternoon.