US TSYs have recovered some of the.....>

BOND SUMMARY: US TSYs have recovered some of the earlier losses following the

announcement that the Chinese Vice Premier would be attending trade discussions

in Washington this week. Although Beijing has played down the latest escalation,

the US has further upped the ante by claiming that China is reneging on its

pledges. TYM9 trades at 123-25+ and near the middle of the day's range.

- EGBs have broadly rallied this morning, although longer-end BTPs have given

back a lot of the early gains.

- The BBCs political editor Laura Kuenssberg earlier tweeted that PM Theresa May

is offering Labour a temporary customs union in order to gain support for her

Brexit deal. MPs from both sides continue to pour cold water on the idea of a

cross-party deal, which could further weaken core support. Gilts have rallied

this morning with marginal outperformance at the longer end. Yields are 2-3bp

lower on the day.

* Jun Bund futures (RX) up 30 ticks at 165.74 (L: 165.24 / H: 165.81)

* Jun BTP futures (IK) down 5 ticks at 130.42 (L: 130.34 / H: 130.74)

* Jun OAT futures (OA) up 21 ticks at 162.35 (L: 162.50 / H: 161.98)