Core bond markets have moved a.........>

BOND SUMMARY: Core bond markets have moved a little higher this morning despite

the risk-on feel to equity markets. Peripheral spreads have tightened somewhat,

however, as a DPA report suggest that the EU Covid deal today will be a

EUR750bln package, of which EUR500bln will grants and EUR250bln will be loans.

This is a larger grant size than had been expected with Italian, Spanish and

Portuguese debt seeing the biggest tightening of spreads. More details are

likely to emerge later today with the exact make up of the plan still yet to be

confirmed but this package does appear to be bigger than the Franco-German plan.

- Against this backdrop, France is issuing a 20-year OAT via syndication and has

seen a record order book of over EUR58bln inc JLM orders.

- Later today we will also hear from the Fed's Bullard and Bostic while the

Beige Book will be released.

- TY1 futures are down -0-0+ today at 138-30 with Bund futures up 0.06 at 172.22

and Gilt futures up 0.17 at 138.17.