Bond trade lower, as risk recover some of the losses

EGBs trade lower this morning, as Equities recover some of their lost ground.

• Trump tweet have dominated market into the US close last night and overnight.
• Initially ending talks with Democrats on a stimulus package until at least after the elections.But took to twitter hours later to outline some separated measures he would be able to agree upon.
• ITALY/Bund is through the tightest level seen since 12/02/2020 at 128.8221, now at 128.1.
• You now have to go back to 07/05/2018 level, when 122.2557 low was printed
• BTP are outperforming once again, as Italian political risk diminish, since that 20-21st September Italian vote.
• EU fiscal support has also provided some positive impetus for the likes of Italy.
• Gilts have remained steady as investors awaits on Brexit news, with informal talks continuing this week.
• Long end Treasury in once again seeing better selling, with over 11k sold in TY as we test through the low.
• Curve is bear steepening in 5/30s, after the large flattening last night, following Trump's first tweet.5/30s is 123.592, after printing a 127.625 high yesterday.
• Looking ahead, ECB's Lagarde & Villeroy are due to speak as well as Fed's Williams, Kashkari, Bostic, Rosengren and Evans. FOMC minutes from their September decision is also scheduled.