This morning's UK labour market........>

BOND SUMMARY: This morning's UK labour market report was the highlight of the

data calendar today. Wage growth came in slightly below expectations, while the

employment change data surprised higher (180k 3m/3m vs 148k survey).

- The German ZEW data missed, but it is not typically a market-moving print.

- The US returns today following the Monday public holiday with a broadly

risk-off mood in USTs. Cash yields are 3-5bp lower with the curve bull

flattening.

- There was limited reaction in gilts to the labour market data, with demand

likely driven by continued fears over the coronavirus. Current gilt cash yields:

2-year 0.521%, 5-year 0.477%, 10-year 0.610%, 30-year 1.105%.

- Bunds have rallied and, similar to the UK, have been relatively unresponsive

to the ZEW data. The 2s30s spread is 3bp narrower.

- BTPs broadly trade unch on the day, albeit with a modest push lower in very

long-end yields.