With most European markets and much....>

BOND SUMMARY: With most European markets and much of mainland Asia on holiday,

there has been thin trading outside of the UK.

- There has been some light buying of gilts as well as white and red short

sterling contracts in reaction to UK manufacturing PMI data that hinted that

there was only a minimal UK economic rebound in Q2, following on from last

week's poor Q1 GDP release. March consumer credit figures were also weak.

- In the front end of the short sterling strip, saw buying with Sep8 contract

bought on screen at 99.15 in 10k and go bid over in 2k. Further down, Sep0 has

broken higher to 98.630, a three-month high, through a seven-month downtrend and

above the 100-day m.a., suggesting further upside pressure ahead. Gilts have

ticked higher too post-PMI, with G M8 up 11 ticks to 122.38.

- JGBs have begun the holiday shortened week on the front foot edging higher,

with JBM8 up 25 ticks at 150.89.

- USTsys are basically flat on the day. The Eurodollar strip has operated in a

limited manner, with the white and red contracts 0.5 to 1.5 ticks lower. More

action is expected this afternoon, with data including US ISM manufacturing.