UK Govie curve, Rate and FX is where...>

BOND SUMMARY: UK Govie curve, Rate and FX is where all the action has been.

-GBP made new high of the day, rallying close to 3% the past 2 days, and looking

to test the August high at 1.2310 (high so far is 1.2286).

-The big move in the Pound, triggered decent Gilt selling, with the contract

down 50 ticks on the day, also in line with other EGBs.

-Big trade executed in Short Sterling, looking for either Rate cut or more tail

wind on Brexit (or both). Although, given the clip size, this looks more likely

to have been an insurance hedge: L Z9 99.75/99.875 cs, bought for 0.75 in 108k

-EGB's have stayed within ranges in subdued start for our London session.

-Bund upside was capped by Heavy Supply, with Spain and France tapping the

market, and are trading closer to its low at the time of typing.

-BTP trades into negative territory, down 42 ticks on the day.

-Peripherals are mostly flat to a touch tighter against the German 10yr, but

very little to report in terms of flow or notable market colour.

-US Treasuries are lower in early trading, mostly led by EGBs. Very little to

report, with Equities in Green territory, but all within ranges.