Bear steepening this morning

EGB's have bear steepened during the morning session, with long end part of the curve sold on Equity buying.

• Bid in risk is option expiry related, as gamma kicked in.
• Peripheral were also sold hard, pushing spread against Germany 10s wider.
• Greece sit at 7.6bps, while Italy, Portugal and Spain trend around 3bps wider this morning.
• Gilts has held onto gains, with Brexit still at the forefront, ahead of the MEP Sunday deadline.
• Gap still remain, and the window is clearly narrowing with just 2 weeks to the end of the transition period.
• We await on potential update from Boris Johnson.
• Treasuries have traded in tandem with EGBs, also weighted by US stimulus hope.
• @ChadPergram: "Work continues behind the scenes on coronavirus bill. Still no bill text. Government funding expires tonight at 11:59:59 pm et. Interim bill likely to avert shutdown tonight. Weekend work likely in Congress to finish up"
• Looking ahead, sees little in terms of data, with all eyes on Brexit and US stimulus going into the weekend.
• Fed's Brainard Discusses Climate Change and Financial regulations.
• Mar Bund futures (RX) down 33 ticks at 177.36 (L: 177.32 / H: 177.85)
• Mar Gilt futures (G) down 2 ticks at 134.61 (L: 134.53 / H: 134.82)
• Mar BTP futures (IK) down 54 ticks at 151.54 (L: 151.48 / H: 152.18)Italy / German 10-Yr spread 2.3bps wider at 113.3bps
• Mar OAT futures (OA) down 34 ticks at 167.42 (L: 167.38 / H: 167.91)
• US Mar 10-Yr futures (TY) down 2.5/32 at 137-25 (L: 137-24.5/ H: 137-30.5)