Bunds reverse earlier losses, peripheral spreads widen

It has been a mixed day for European equity markets which were higher in the morning but have largely given up their gains. Bunds have also retraced some of their losses and yields are unchanged on the day.

• However, peripheral spreads which were already wider earlier today in contrast to the moves seen in equities have continued to widen throughout the afternoon session. BTP-Bund spreads in particular have widened today, with the 10-year spreads around 6bp wider on the day at the time of writing. The peripheral underperformance is largely due to continued Covid-19 concerns.
• Bund futures are down -0.03 today at 176.04 with 10y Bund yields unch at -0.622% and Schatz yields down -0.6bp at -0.785%.
• BTP futures are down -0.74 today at 149.48 with 10y yields up 6.1bp at 0.711% and 2y yields up 3.3bp at -0.333%.
• OAT futures are down -0.25 today at 169.89 with 10y yields up 1.3bp at -0.334% and 2y yields down -0.2bp at -0.715%.