Core fixed income has had an...........>

BOND SUMMARY: Core fixed income has had an underlying bid tone through the

European morning session as risk-off sentiment has continued. The number of new

cases of coronavirus in China continues to fall but there is growing concern

about the growing number of cases in South Korea bringing the total number of

cases in the country to 51.

- In terms of economic data, UK inflation data came in a little higher than

expected (although there had been a wide dispersion of forecasts for the print).

In spite of this, gilts are outperforming both Treasuries and Bunds.

- Looking ahead there are a number of Fed speakers: Bostic, Mester, Kashkari,

Kaplan and Barkin are all due to speak with the FOMC Minutes also due for

release.

- TY1 futures are up 0-0+ today at 131-07 with 10y UST yields down -1.2bp at

1.550% and 2y yields down -0.3bp at 1.411%. Bund futures are up 0.11 today at

174.64 with 10y Bund yields down -0.9bp at -0.418% and Schatz yields down -0.3bp

at -0.652%. Gilt futures are up 0.26 today at 134.03 with 10y yields down -1.7bp

at 0.593% and 2y yields down -1.2bp at 0.511%.