Bunds outperformed Treasuries and.......>

EGB SUMMARY: Bunds outperformed Treasuries and gilts through the morning session

and although they are off their highs are still outperforming their peers on the

day. This is largely a partial retracement of the weakness seen yesterday as the

European Covid plan appears to have scope to be bigger than previously expected.

- Peripheral spreads continue to tighten. BTPs saw 10-year yields fall below

1.50% for the first time since early April yesterday and generic yields are

currently flirting with the 100-dma which we have not convincingly broken since

the pandemic intensified in Italy. Only the illiquid Cyprus and Lithuania have

seen spreads widen today. Latest levels:

* Jun Bund futures (RX) down 3 ticks at 172.04 (L: 171.68 / H: 172.32)

* Germany: The 2-Yr yield is down 0.5bps at -0.639%, 5-Yr is down 1.2bps at

-0.618%, 10-Yr is down 0.8bps at -0.422%, and 30-Yr is down 0.1bps at 0.027%.

* Jun BTP futures (IK) up 68 ticks at 142.86 (L: 141.7 / H: 142.94)

* Italy / German 10-Yr spread 6.9bps tighter at 184.7bps

* Jun OAT futures (OA) up 44 ticks at 168.04 (L: 167.32 / H: 168.23)