- US TSYs have rallied and the curve...>

BOND SUMMARY: - US TSYs have rallied and the curve has flattened over the past

hour. The 10-year yield has edged down to 3.1397% from 3.153% while the 2s10s

spread has narrowed to 24.3bps from 24.99bps.

- The JGB curve has flattened slightly following the release of weaker than

expected GDP data for Q3 (in annualised terms).

- Bunds have lacked direction this morning. The 10-year benchmark trades in a

0.382/0.397% range and the curve is broadly flat on the day.

- BTPs sold off sharply at the open as Rome refuses to back down on its budget

plans. At one point the 2-year yield surged to 1.1499% from 1.014% at

yesterday's close, before pulling back to 1.072%.    

- Our MNI Exclusive story this morning indicates that Spain is not planning new

ultra-long issues in 2019. The 10s30s curve has steepened slightly - currently

trading at 112.1bps off a morning low of 108.9bps.

- Gilts have sold off on the back of concerns that PM May will struggle to gain

support for the proposed withdrawal agreement. 

- Euro$ futures are broadly flat, Euribor futures strip has flattened slightly.