Bunds have moved higher in line with....>

EGB SUMMARY: Bunds have moved higher in line with a deterioration in risk

sentiment as concerns have picked up over the international spread of the

coronavirus with cases now confirmed in Singapore and suspected in the UK.

- The ECB meeting today revealed had changed in immediate policy although the

language surrounding inflation was upgraded from "mild" to "moderate" and the

ECB acknowledged that risks have rescinded a little. Lagarde also confirmed that

the ECB was happy with the tiering system multiplier currently in effect.

- Attention now turns to the PMIs tomorrow with EGBs also at the mercy of

further changes in risk appetite.

- BTP spreads have narrowed 4.2bp today.

- Bund futures are up 0.70 today at 173.03 with 10y Bund yields down -4.9bp at

-0.310% and Schatz yields down -1.4bp at -0.606%.

- BTP futures are up 1.16 today at 144.23 with 10y yields down -9.1bp at 1.255%

and 2y yields down -5.2bp at -0.54%.

- OAT futures are up 0.74 today at 165.47 with 10y yields down -5.4bp at -0.62%

and 2y yields down -1.6bp at -0.568%.