US TSYs have been bid this morning.....>

BOND SUMMARY: US TSYs have been bid this morning with yields 1-5bp lower and the

curve bull steepening. The 2-year benchmark leads the charge, trading at 1.883%

down from a morning high of 1.926%. TYU9 trades at 126-31+, near the top of the

day's range.

- Gilts are trading relatively mixed and seemingly unstirred by the ongoing

debate on whether the incoming Conservative leader can force no-deal Brexit

through parliament. Current yield levels: 2-year 0.585%, 5-year 0.631%, 10-year

0.849%, 30-year 1.443%.

- An ECB Sources story published earlier indicated that while some ECB officials

believe that QE could make a return if necessary, others have questioned the

viability of restarting the PSPP.

- Bunds trade close to unch. Current yield levels: 2-year -0.683%, 5-year

-0.595%, 10-year -0.236%, 30-year 0.372%.

- BTPs have rallied with yields broadly 2bp lower. The 30-year underperforms the

curve as longer-end supply comes to market. 

- Euro$ futures are 2.0-4.5 ticks higher.