Core bonds have recovered some early...>

BOND SUMMARY: Core bonds have recovered some early losses with both Bunds and

Treasuries making new recent highs as risk-off conditions continue to dominate

following the continued spread of the coronavirus. The Bund curve has bull

flattened while the UST 2s10s has only flattened by 0.2bps. Gilts are currently

bucking the trend with the benchmark 10y gilt currently being auctioned.

- Looking ahead the key economic data due for release include US durable goods

and Conference Board consumer confidence as well as the UK CBI sales survey.

- There has been some decent supply across Europe with both France and Greece

syndicating 30y and 15y issues respectively while Italy are selling CTZs and

linkers while the UK sells its benchmark 10y gilt.

- TY1 futures are up 0-5+ today at 131-02 with 10y UST yields down -2.2bp at

1.587% and 2y yields down -2.2bp at 1.411%.

- Bund futures are up 0.04 today at 174.27 with 10y Bund yields down -0.6bp at

-0.393% and Schatz yields down -0.4bp at -0.636%.

- Gilt futures are down -0.02 today at 135.08 with 10y yields down -0.2bp at

0.505% and 2y yields up 0.6bp at 0.407%.