Bunds largely ignore risk-off moves

Bunds have ignored the global risk-off move and in spite of a decent rally in Treasuries and gilts, Bunds yields are higher on the day.

• The move in Bunds is consistent with the move seen in EGB peripherals with spreads tightening mostly through the morning session before holding steady through the afternoon.
• BTPs had been the major outperformer in EGB space through the morning after the decision by S&P to affirm the BBB rating and upgrade the outlook to stable from negative. However, spreads have since come in a little.
• Focus remains on Covid-19, Brexit talks and the ECB meeting, with the announcement and press conference due Thursday.
• Bund futures are up 0.04 today at 175.30 with 10y Bund yields up 0.5bp at -0.572% and Schatz yields up 0.5bp at -0.758%.
• BTP futures are up 0.52 today at 149.38 with 10y yields down -2.9bp at 0.728% and 2y yields down -2.3bp at -0.366%.
• OAT futures are up 0.03 today at 169.37 with 10y yields up 0.5bp at -0.296% and 2y yields down -0.8bp at -0.700%.