USTs have weakened this morning with...>

BOND SUMMARY: USTs have weakened this morning with yields broadly 2-3bp higher

across the curve. TYZ9 currently trades at 131-15+ and near the bottom of the

day's range.

- MNI interviewed the ECBs Lautenschlager, who has stated that there is no need

for more QE and the positive effects of more rate cuts are unclear.

- German bunds trade close to unch on the day. Current yield levels: 2-year

-0.915%, 5-year -0.909%, 10-year -0.699%, 30-year -0.179%.

- Italian BTPs continue to rally on the assumption that a market-friendly

government will soon taker over. The belly of the curve has outperformed with

the 5-year benchmark yield down 6bp.

- An attempt to block UK Prime Minister Boris Johnson's plan to suspend

parliament has been denied by a Scottish court. This is likely to be the first

of several challenges to the government's prorogation effort. Gilts trade

slightly softer with yields 1-2bp higher.