Bunds rallied in the Asian session on...>

EGB SUMMARY: Bunds rallied in the Asian session on news that the speed spread of

the coronovirus was picking up in China and was now confirmed to be passing from

person to person. However, following better UK labour market data, Bunds

followed gilts lower and hit their lows of the day shortly ahead of North

America getting into the office. The arrival of traders across the pond saw USTs

start to move higher and lead Bunds, before Bunds accelerated shortly before 3pm

GMT.

- Peripheral spreads have been a separate story today. The majority of spreads

are largely unchanged on the day with the exception of BTPs. Spreads widened

around 5bps earlier before tightening back to around 3.3bp wider on the day.

There was no real explanation for the move, or subsequent reversal.

- Bund futures are up 0.54 today at 172.21 with 10y Bund yields down -3.4bp at

-0.254% and Schatz yields up 0.4bp at -0.588%.

- BTP futures are up 0.10 today at 143.16 with 10y yields down -0.3bp at 1.348%

and 2y yields up 0.7bp at -0.18%.