- US treasury yields have ticked.......>

BOND SUMMARY: - US treasury yields have ticked lower. The 2-year has traded down

to 2.641% from 2.653% and the 10-year is down to 2.848% from 2.860%.

- The 2-year JGB yield is down slightly to -0.127% from -0.119%.

- German bund yields have edged up this morning. The 2-year trades at -0.600%

from a low of -0.610% and the 10-year has traded up to 0.349% from 0.339%.

Retail sales were weaker than expected for July, down -0.4% M/M vs -0.2% survey.

- The French curve is relatively flat on the day. Key levels: 2-year -0.438%,

5-year 0.044%, 10-year 0.697%, 30-year 1.598%.

- Pressure on Italian BTPs has eased slightly, with the spread of the Italian

over German 2-year bond yield has narrowed to 1.889% from 1.999%. 

- UK gilts have lacked direction this morning. Short sterling futures are

broadly flat.

- Euro$ futures are 1.0-2.0 ticks higher. The Euribor futures strip is flat to

0.5 ticks higher.