Covid-19 concerns push Bunds higher and BTPs lower on the open

Concerns surrounding fresh Covid-19 restrictions across the Eurozone have helped push Bunds higher, BTPs lower and have seen a sell off of between 1.5%-2.0% in most European equity index futures this morning.

• Chancellor Merkel has been reported as wanting a meeting of the leaders of the federal states today to discuss measures including shutting all bars and restaurants.
• President Macron is expected to announce new restrictions at 19:00GMT/20:00CET after a two day meeting of his Covid-19 taskforce. Reuters have reported that restrictions could include extending the curfew.
• Bund futures are up 0.28 today at 176.22 with 10y Bund yields down -1.8bp at -0.634% and Schatz yields down -1.2bp at -0.792%.
• BTP futures are down -0.26 today at 149.40 with 10y yields up 2.6bp at 0.725% and 2y yields up 1.5bp at -0.364%.