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TRADE TENSIONS INTENSIFY

BOND SUMMARY

Government bonds are trading mixed this morning and little changed on the day.

- The UST curve has bull flattened slightly with the 2s20s and 2s30s spreads 2bp narrower.

- Gilts trade around yesterday's closing levels. Last yields: 2-year -0.044%, 5-year -0.0898%, 10-year 0.1067%, 30-year 0.6307%.

- Price action in bunds is relatively contained with the curve ~1bp flatter.

- BTPS are a toucher weaker and the curve marginally steeper.

- Reflecting what is likely to be a core pillar of his campaign strategy ahead of this year's election, US President Donald Trump and intensified the crackdown on Chinese trade by giving US companies 45 days to stop engaging in business activities with ByteDance, the owner of WeChat and Tiktok..
- Alongside continued concerns about a possible second wave in Europe, India has reported a record number of daily coronavirus cases.

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