Bonds have been bid as equities have...>

BOND SUMMARY: Bonds have been bid as equities have been severely selling off

across the world with several stocks and indices hitting limit down circuit

breakers. Trump's coronavirus plan has hit sentiment with particular focus on

the travel ban from Schengen countries. There is also a UK COBRA meeting

scheduled today where it is expected that we are now officially moving from the

"containment" to the "delay" phase.

- Treasuries are leading the move higher with 10-year yields down 14bp at

writing while 10-year gilt yields are down over 6bp but 10-year Bund yields only

down 3.5bp. The Bund 2s10s curve has bucked the trend and is steepening rather

than flattening. Following the emergency rate cuts from both the Fed and BoE

there is now much focus on how the ECB will respond, with easing of some sort

expected. Peripheral spreads have widened once again today led by BTPs.

- TY1 futures are up 1-02 today at 138-15 with 10y UST yields down -13.0bp at

0.742% and 2y yields down -13.0bp at 0.393%.

- Gilt futures are up 0.66 today at 137.83. Bund futures are up 0.39 at 177.16

with BTP futures down -1.45 at 143.47 and OAT futures up 0.04 at 171.78.