Bunds continue to outperform core fixed income

Bunds had been outperforming other global core FI throughout the morning session and that is still the case but gilts and Treasuries have caught up a large amount of this - Treasuries particularly since a weak initial jobless claims print in the payroll survey week.

• Germany released its issuance plans for 2021 today and it plans to issue more in 2021 than it did in 2020. If it sticks to the same schedule as last year, we may also get Italy's issuance plans for 2021 released tomorrow.
• Brexit negotiations continue to drag on but most of the noises coming from sources seem to be mildly positive (while the official rhetoric from the UK remains negative).
• The big news of the day is that French President Macron has contracted Covid-19 and had previously been in contact with the prime ministers of both Spain and Portugal.
• Bund futures are up 0.36 today at 177.91 with 10y Bund yields down -2.2bp at -0.590% and Schatz yields down -0.8bp at -0.742%.
• BTP futures are up 0.33 today at 152.42 with 10y yields down -2.3bp at 0.512% and 2y yields down -1.3bp at -0.458%.
• OAT futures are up 0.39 today at 168.02 with 10y yields down -2.5bp at -0.356% and 2y yields down -0.5bp at -0.715%.