After a risk-off Asian session.........>

BOND SUMMARY: After a risk-off Asian session following through from last week's

concerns over a second peak in Covid cases, equities have moved off their lows

and core fixed income has moved off its highs. (Although equities are still

lower on the day and core fixed income higher).

- There hasn't really been much of a catalyst for the pause in the fixed income

rally / equity sell-off. Most market participants are still pointing to Covid

cases as being the overriding theme for the market.

- There is little on the calendar to move the docket today with empire

manufacturing the key data release. There will be more focus tomorrow on retail

sales and IP for May. Later this week there will also be focus on the BOE policy

decision with an extra GBP100bln of QE expected to be announced.

- TY1 futures are up 0-4+ today at 138-28 with 10y UST yields down -2.9bp at

0.676% and 2y yields down -0.8bp at 0.186%. Bund futures are up 0.12 today at

175.69 with 10y Bund yields down -1.3bp at -0.454% and Schatz yields down -0.5bp

at -0.684%. Gilt futures are up 0.17 today at 137.28 with 10y yields down -1.4bp

at 0.193% and 2y yields down -0.6bp at -0.49%.