US President Donald Trump has ramped...>

BOND SUMMARY: US President Donald Trump has ramped up tariff threats against

China, while a US aircraft carrier and bomber task force has been sent to the

Middle East in response to an alleged Iranian escalation. UST futures have

traded higher this morning with TYM9 up 14 ticks from Fridays close.

- The UK observes a public bank holiday today. Labour MPs continue to ratchet up

pressure on the party leadership to commit to a second referendum on any

cross-party Brexit deal, while PM Theresa May is alleged to have held secret

discussions on a possible three-way referendum.

- Italian BTP yields spiked slightly after Austrian Chancellor Sebastian Kurz

argued that the EU should be stricter on Italian budget indiscipline. Budget

politics may have died down, but have not gone away.  

- European automaker stocks have fallen sharply on the back of Trump's trade

rhetoric. EGBs have similarly rallied. Bunds yields are marginally lower on the

day. Current yield levels: 2-year -0.596%, 5-year -0.423%, 10-year 0.010%,

30-year 0.660%.

- Euribor futures are broadly flat/1.5 ticks higher.