There has been a bit of a divergence...>

BOND SUMMARY: There has been a bit of a divergence in global bond markets this

morning with USTs, Bunds and JGBs moving lower but gilts moving a little higher

so far this morning.

- Gilts continue to trade in line with Brexit rhetoric and today's move higher

follows yesterday's indicative votes. There was no majority for any of the

policies tabled and the risk of a no deal Brexit is once again drifting higher.

Gilt futures are marginally higher, up 0.04 to 129.38 while 10y yields are down

1.6bp to 0.997% and 2y yields down 3.1bp to 0.642%.

- Elsewhere there is a more risk positive tone with European equities are a

little higher. TY1 is down 0-03 to 124-19 with 10y UST yields up 1.1bp to 2.38%

and 2y yields up 2.2bp to 2.222%.

- Bund futures are down 0.23 to 166.36 with 10y yields up 0.9bp to -0.072% and

Schatz yields up 1.9bp to -0.584%.

- Spanish, Italian and Portuguese spreads to Bunds are all a couple of basis

points wider on the day.