Core bond markets are seeing a bear....>

BOND SUMMARY: Core bond markets are seeing a bear steepening this morning

despite equities remaining under some pressure this morning. Treasuries have

been leading the moves lower followed by gilts and Bund.

- However in spite of these moves, peripheral spreads have widened as concerns

about the spread of Covid-19 across Europe and the impact of mitigation measures

on economic output continue to be at the forefront of investor's minds. However,

with the situation now worsening outside of Italy too, it is no longer BTP-Bund

spreads that are seeing the biggest moves. Spreads have widened across Spain,

Portugal, Ireland and Belgium more than for BTPs today.

- Gilt futures are down -0.36 today at 134.66 with 10y yields up 5.6bp at 0.489%

and 2y yields up 2.0bp at 0.276%.

- Bund futures are down -0.63 today at 171.54 with 10y Bund yields up 4.6bp at

-0.419% and Schatz yields up 3.0bp at -0.874%.

- BTP futures are down -0.48 today at 132.40 with 10y yields up 2.7bp at 2.188%

and 2y yields up 1.3bp at 1.122%.