There is some divergence in core.......>

BOND SUMMARY: There is some divergence in core bond markets this morning with

Treasuries moving higher but gilts and Bunds grinding lower, although there

doesn't seem to be too much of a catalyst for these moves.

- European data this morning was a little disappointing has been mixed as German

exports and French IP both disappointed. Italian IP was in line with

expectations on the Y/Y and only better than expected M/M due to a downward

revision to July data. UK data was generally a little disappointing too but saw

some upward revisions to previous months too.

- Looking ahead to the afternoon, US CPI will be in focus with wage and claims

data due for release today while Daly, Mester and Bostic are all due to speak

following yesterday's FOMC Minutes.

- TY1 futures are up 0-3 today at 131-12 with Bund futures down -0.36 at 173.69

and Gilt futures down -0.28 at 134.34.