After the Fed cut rates overnight to...>

BOND SUMMARY: After the Fed cut rates overnight to a 0.00-0.25% range, bonds are

trading higher today but remain some way off the highs seen last week. Other

central banks to have followed the Fed's lead include the RBNZ and Bank of

Korea.

- The equity market reaction will be closely watched today as a lead for risk

appetite. Countries across Europe and North America releasing updated case

numbers of Covid-19 will also be watched.

- Peripheral spreads have widened once again today, but BTP-Bund spreads also

remain within the range seen during and after the ECB press conference last

week.

- TY1 futures are up 1-03 today at 137-16 with 10y UST yields down -17.1bp at

0.793% and 2y yields down -16.5bp at 0.329%.

- Bund futures are down -0.57 today at 173.60 with 10y Bund yields down -0.6bp

at -0.554% and Schatz yields down -2.2bp at -0.914%.

- Gilt futures are up 0.19 today at 136.08 with 10y yields down -3.4bp at 0.374%

and 2y yields down -4.2bp at 0.237%.