Core bonds sold off overnight and......>

BOND SUMMARY: Core bonds sold off overnight and into the European open but after

recovering some of their losses, USTs and Bunds have been fairly range bound for

the last hour and a half or so.

- Focus remains on risk sentiment and European equities have moved higher this

morning. However, peripheral spreads continue to remain wide with BTP-Bund

10-year spreads continuing to flirt with the 250bp level.

- This morning a number of central banks have provided either liquidity or cut

rates - most notably the Norges Bank who cut by 50bp in an emergency meeting.

- There could be a lot of focus on the Michigan confidence data later today

which had a survey period of Feb 26 - Mar 11. This will be the first major data

release that had a survey period after the coronavirus started to spread through

Italy (cases in Italy really started to pick up from 22/23 Feb).

- TY1 futures are down -0-6 today at 137-02 with Bund futures down -1.43 at

175.07 and Gilt futures down -0.62 at 136.65.