Core Fixed Income a Bit Higher on Spanish Covid Cases

A mixed morning for markets with core fixed income generally a bit higher
and European peripheral spreads a bit wider but equities are more mixed
with European equities generally a little lower and US equity futures
generally a little higher.

• Spain has seen a rise in the number of Covid cases over the weekend
  but there has been no real divergence between Spanish spreads and
  other European peripheral spreads this morning (despite Spanish
  equities underperforming). Covid case numbers will continue to be
  watched globally.
• This week will be dominated by Phase 4 of the US fiscal response
  with negotiations likely to begin this week while Wednesday's FOMC
  meeting will be closely watched for any changes to forward guidance.
• TY1 futures are up 0-4 today at 139-22+ with Bund futures up 0.32 at
  176.41 and Gilt futures up 0.24 at 138.14.