Weaker equities and oil have bonds.....>

BOND SUMMARY: Weaker equities and oil have bonds on the front foot, with

Treasuries benefiting the most ahead of Wednesday's FOMC decision.

- Treasuries are stronger in the early going; Mar 19 T-Note future is up 6/32 at

120-27, having traded in a range of 120-195 to 120-285.

- The belly is outperforming: 2-Yr yield is down 2.1bps at 2.6708% (through key

2.68% level), 5-Yr is down 3.2bps at 2.6612%, 10-Yr is down 2.9bps at 2.8282%.

- Mar 19 Bund future up 35 ticks at 163.49, near day's highs.

- Reports that the EU and Italy are a few billion euros apart on the budget have

had little impact with an early drop fully reversed; Mar 19 BTP future is up 19

ticks at 125.54, having traded in a range of 124.57-125.56 today.

- The Mar 19 Gilt future is up 32 ticks at 123.67. The 2-Yr yield is down 2.3bps

at 0.714%, 10-Yr is down 3.3bps at 1.233%.

- JGB futures are up 16 ticks at 152.48, with a lack of constructive comments

from President Xi's speech disappointing risk assets.

- Little in the way of key data later today; German Dec IFO came in a little

soft (101.0 v 101.7 surv).