- US TSY yields are edging lower.......>

BOND SUMMARY: - US TSY yields are edging lower with marginal outperformance at

the longer-end causing the curve to steepen. The 10-year benchmark yield trades

at 2.629% down from 2.647% with 2s10s narrowing to 16.7bps from 17.7bps.

- The Mar-19 JGB future trades at 152.87 in the middle of the day's range.

- January PMI manufacturing data for the euro area has been broadly weak.

- The German bund curve has steepened slightly with 2s30s trading at 132.95bps

and up 2.6bps on the day.

- The longer end of the French OAT curve has similarly come under pressure this

morning with 10-/30-year yields up 1.5-2bps on the day.

- Italian BTPs have been the big mover following the particularly subdued

manufacturing PMI reading (47.8 vs 48.8 survey), with yields broadly up

10-13bps. The very long-end has fared slightly better, allowing the 2s30s to

trade down to 317.2bps from a high of 321.4bps

- Gilt yields are 1-2bps higher from the morning lows with the curve slightly

steeper.

- Euro$ futures are broadly flat/1.0 ticks lows.