- US TSYs have rallied this morning....>

BOND SUMMARY: - US TSYs have rallied this morning following yesterday's

relatively dovish FOMC meeting. Yields are 1-2bps lower from yesterday with

slight outperformance at the short-end. The 2-year trades at 2.488% down from a

high of 2.514%.

- The Mar-19 JGB future trades at 152.78 at the day's highs.

- Short-end bund yields have inched higher this morning while the longer end has

oscillated in a tight 1-2bp range.

- French OATs have traced out a similar path with the curve flattening slightly

from early morning. 2s30s trades at 197.3bps from a high of 198.4bps.

- BTPs trade a touch stronger from yesterday with the 10-year outperforming the

curve. Current yield levels: 2-year 0.2496%, 10-year 2.577%, 30-year 3.453%.

- The very long-end of the gilt curve has steepened with the 2s30s spread

widening to 96.0bps from 93.4bps.

- Euro$ futures are 1.0-4.5 ticks higher with reds outperforming. Euribor

futures are flat in whites and 1.0-2.5 ticks higher in green/blues.