A sharp spike in new diagnosed cases...>

BOND SUMMARY: A sharp spike in new diagnosed cases of Coronavirus and a surge in

the death toll has spooked markets and triggered a safe haven bid. 

- USTs have rallied sharply with yields 5-6bp lower and the curve slightly

flatter. Current yield levels: 2-year 1.395%, 5-year 1.391%, 10-year 1.573%,

30-year 2.042%

- The UK PM has reshuffled his cabinet. Business Secretary Andrea Leadsom,

Northern Ireland Secretary Julian Smith and housing minister Esther McVey are

out, while Johnson's core ministers (Chancellor of the Exchequer Sajid Javid,

Foreign Secretary Dominic Raab and Cabinet Office Minister Michael Govve) are

expected to remain.

- Gilts have traded firmer this morning with yields 2-4bp lower on the day. 

- This morning's data was relatively immaterial. Final German CPI data for

January printed in line, while French unemployment came in lower than expected

(8.1% vs 8.5% survey).

- Bunds have rallied, with the 30-year yield down 5bp. BTPs outperform with

longer-end yields down 6bp.