US-China trade talks have been the.....>

BOND SUMMARY: US-China trade talks have been the biggest talking point in

markets this morning. Initially the focus was on headlines from the MOFCOM press

conference where officials said that "outside rumours are incorrect" regarding

agreements surrounding tariff removals. Headlines since then from Dow Jones

sources have said that China's chief negotiator has invited his American

counterpart for another round of face-to-face talks.

- TY1, Bund futures are gilt futures are all lower at the time of writing today.

Peripheral spreads are little changed on the day with the exception of BTP

spreads which have tightened around 3bp on the day.

- There was some early excitement after ESTR fixed 3bp higher, but it seems that

this is due to a seasonal pattern with one large bank skewing the data on a

quarterly basis.

- TY1 futures are down -0-6+ today at 129-19 with Bund futures down -0.23 at

170.86 and Gilt futures down -0.20 at 131.55.