With most of the European market.......>

BOND SUMMARY: With most of the European market close for Labour day, the early

morning session has been muted, especially with the big 3 events of the week

behind us (Fed, ECB and Month End) 

-ECB Lane was on the wires: "Non fundamental volatility in spreads impairs the

smooth transition of Monetary Policy across countries". 

-Focus, this morning has been on the US and UK market market, and with Equities

lower this morning, Govies have mainly been underpinned. 

-Gilts are up 9 ticks, and have traded in 22 ticks range, and also very little

to report in the short end (Short Sterling), with the strip flat on the day. 

-MNI:UK FINAL APR MFG PMI 32.6; FLASH 32.9; MAR 47.8. 

-For Treasuries, the push lower in the S&P and US equities, has kept the long

end strip better bid, but in thin liquidity and within ranges. 

-We have very little on the calendar, with the standout data, the US ISM

manufacturing later this afternoon. Aside from the ISM, the Markit US

Manufacturing PMI is also due out for release, but this will be the final

reading and as such, it is unlikely to have much impact into Treasuries..