- There has been some divergence in....>

BOND SUMMARY: - There has been some divergence in global bond markets this

morning.

- USTs hit a low yesterday just after 20:00GMT and retraced some of yday's

losses. A softer than expected Chinese PMI also helped the bid through the Asian

session with TY1 hitting a high of 122-05+ shortly after the European open. The

UST curve has steepened a little with 2y yields down 1.8bp on the day at 2.480%

and 10y yields down 1.4bp on the day at 2.668%

- Gilts are largely unchanged on the day. A strong open has been reversed

leaving yields largely unch on the day. 2y yield at 0.830%, 10y yield at 1.273%.

- Bund futures are also unchanged on the day after moving a bit higher ahead of

yesterday's close, but cash Bunds have sold off a little with 10y yields up

0.9bp at 0.158% and Schatz yields unch on the day at -0.527%. European

peripheral spreads are mixed this morning.

- French GDP data and Italian CPI has come in in line with expectations but the

regional German CPI prints have risen a little more than expected.

- Big day for data with US and a number more EZ GDP prints and the Chicago PMI.