Coronavirus concerns have been the......>

EGB SUMMARY: Coronavirus concerns have been the overriding driving force in

global markets this morning and EGBs have been no exception. In Europe the

primary concern has been surrounding the spread in Italy. 11 towns in the

Lombardy and Veneto regions in Northern Italy have gone into lockdown with at

least 150 infected and 5 deaths. 

- Volumes in German futures have been almost double normal levels while BTP

volumes have been almost treble. 10y Bund yields touched -0.50% earlier today,

but have since moved 1.4bp off those lows while the entire German curve is now

negative yielding.

- BTP-Bund spreads are 10.5bp wider on the day, at levels not seen since

January, while other peripheral spreads have also moved wider.

- The German IFO came in a bit better than expected, but against a backdrop of

numerous headlines around the time of release, saw no market impact.

- Bund futures are up 0.71 at 175.64 with 10y Bund yields down -5.7bp at -0.489%

and Schatz yields down -2.9bp at -0.676%. BTP futures are down -0.68 today at

147.57 with 10y yields up 4.6bp at 0.955% and 2y yields up 3.7bp at -0.180%.