US TSYs have lacked direction this.....>

BOND SUMMARY: US TSYs have lacked direction this morning. Cash yields are ~1bp

lower on the day. Current yield levels: 2-year 1.866%, 5-year 1.858%, 10-year

2.114%, 30-year 2.615%. TYU9 trades at 127-04, in the middle of the day's range.

- The first UK Conservative leadership ballot will take place today with the

result expected to be announced at around 1300BST. Boris Johnson remains the

frontrunner and currently stands at 1.43 on the Betfair Exchange. Gilts have

rallied this morning with yields 2-3bp lower. The curve trades flat.

- Core EGBs trade close to unch on the day. 

- Current bund yields: 2-year -0.686%, 5-year -0.598%, 10-year -0.243%, 30-year

0.362%.

- Italian BTPs have gone bid with yields 2-4bp lower. This morning's 15-year BTP

auction was well covered.

- Euro$ futures are 1.0-3.0 ticks higher. Euribor futures are broadly flat/0.5

ticks higher.