Washington and Beijing continue to.....>

BOND SUMMARY: Washington and Beijing continue to trade blows in a tit-for-tat

fashion with US President Donald Trump effectively blacklisting Huawei by

requiring domestic firms to obtain a license before selling critical technology

to the company. 

- Meanwhile, Chinese authorities have now formally arrested two Canadians

(previously detained following the arrest of Huawei CFO Meng Wanzhou in Canada)

on suspicion of spying.

- Official data show that China sold the most USTs in two years in March.

- It has been a quieter session so far for USTs compared to recent days, with

trading in a relatively tight range. TYM9 trades at 124-23+ and near the middle

of the day's range.

- There is no let up in pressure on UK PM Theresa May, who is meeting with

senior Tories to pin down her departure date. Gilts trade firmer this morning

with yields 2-3bp lower on the day.

- Bunds trade close to unch and the curve is 1bp flatter. Current yield levels:

2-year -0.657%, 5-year -0.516%, 10-year -0.112%, 30-year 0.516%.