US TSYs have been relatively soft......>

BOND SUMMARY: US TSYs have been relatively soft this morning with TYM9 trading

down to 123-03 and near the day's low.

- UK local election results are filtering in. As expected, the Conservatives

have chalked up considerable losses, with Labour also being punished for its

handling of Brexit. The big surprise is the surge in support for the Lib Dems,

which had become a diminished force in UK politics.

- Gilts opened weaker this morning with yields 2-3bp higher on the day. This

morning's Services and Composite PMIs marginally beat consensus.

- It has been a relatively quiet start for EGBs. German bund yields are ~1bp

above yesterday's closing levels. Current yield levels: 2-year -0.591%, 5-year

-0.403%, 10-year 0.0396%, 30-year 0.683%.

- The Italian curve is a touch steeper, largely on the back of the short-end

firming.

- Euro$ futures are 0.5-1.5 ticks lower. The short sterling futures strip has

steepened with greens/blues underperforming.