Busy afternoon session

A busy, but mixed session for EGBs, with markets taking their cue from the ECB.

• Bund were push lower as the ECB increased stimulus by EU500bn.
• EU500bn was broadly in line, but longer extension (most expected 6m extension to end-2021).
• ECB commits to "reinvestment of principal payments from maturing securities purchased under the PEPP until at least the end of 2023
• ""The Governing Council decided to raise the total amount that counterparties will be entitled to borrow in TLTRO III operations from 50 per cent to 55 per cent of their stock of eligible loans."
• Bund printed a 177.77 low, but have since recovered, with attention turning back towards Brexit.
• Peripheral spread have traded in tandem with core and trade close to flat against the German 10 year.
• Italy is best performer, albeit just 1.3bp tighter on the day.
• Spanish 10yr yield, printed another record low at 0.002%, tantalizingly close to negative territory.-
• Bund futures are down -0.24 today at 177.95 with BTP futures down -0.10 at 151.66 and OAT futures down -0.27 at 167.90.