- US TSYs have sold off this morning...>

BOND SUMMARY: - US TSYs have sold off this morning with the benchmark 10-year

yield pushing up to 3.171% from a low of 3.154%.

- Very little movement in JGBs with the 10-year trading within a 0.135/0.142%

range.

- The German curve has flattened on the back of the shorter end selling off. The

2-year bund trades at a yield of -0.569% from -0.585% while the 2s10s spread has

narrowed to 106.1bps from 107.5bps.

- Italian BTPs have rallied since the open with the 2-year yield pushing down to

1.329% from 1.442% and the 10-year down to 3.481% from 3.549%. The curve has

also steepened with 2s10s trading up to 213.8bps from 206.1bps.

- Despite the UK and EU nearing a pivotal showdown in Brexit talks, Gilts seem

to be relatively unperturbed for now with yields trading within a 2-3bps range.

UK wage data for August was slightly stronger than expected with average weekly

earnings ex bonus coming in at 3.1% Y/Y vs 2.9% survey.

- Euro$ futures are 0.5-1.5 ticks lower while the Euribor futures strip is

broadly flat.