A steady session

EGBs and Bund have traded in a tight range during the morning European session.

• Futures contract have stayed underpinned, despite some better buying interest in Equity.
• Covid, vaccine and Brexit remains at the forefront. Astarzeneca reported that they will do an additional Global trial in an effort to clear the results of the last study.
• Peripheral have traded in tandem with Germany, albeit Greece 1.6bp tighter, while Spain sits 0.8bp wider.
• Gilts has traded in a tight range (134.29-134.48), but remains underpinned somewhat as PM Johnson says that "If we leave with on Australian term, we will a great success of it"
• Barnier is now heading to the UK for face to face talks.
• US Treasury curve is bull flatter, with the long end outperforming, on Covid spike's concerns.
• Bund futures are up 0.08 today at 175.59 with 10y Bund yields down -0.3bp at -0.592% and Schatz yields down -0.3bp at -0.767%.
• BTP futures are up 0.09 today at 151.49 with 10y yields down -0.5bp at 0.595% and 2y yields down -0.4bp at -0.419%.
• OAT futures are up 0.06 today at 170.21 with 10y yields down -0.2bp at -0.354% and 2y yields down -0.3bp at -0.696%.