EGB/Gilt

European sovereign bonds trade mixed this morning alongside broadly weaker trading in equities.

• Gilts have firmed with yields 1bp lower on the day and the curve close to flat.
• The bund curve has marginally steepened on the back of the short-end holding firm and yields inching up at the longer end.
• OATs trade mixed, with the most of the movement coming from the shorter-end where where the 2-year yield has edge up 2bp. Last yields: 2-year -0.6863%, 5-year -0.6416%, 10-year -0.2891%, 30-year 0.405%.
• BTPs have rallied slightly with yields 1-2bp lower across the curve.
• The UK is the first country to approve a Covid vaccine, paving the way for a rollout from next week.
• Supply this morning came from the UK (Gilts, GBP3.75bn), Germany (Bobl, E1.637bn allotted) and Greece (Bills, EUR812.5mn).
• Portugal conducted an exchange operation buying E692mn of the 3.85% Apr-21 OT and E684mn of the 2.2% Oct-22 OT, while selling E592mn of the 2.125% Oct-28 OT and E784mn of the 1.95% Jun-29 OT.
• Data published this morning show the Eurozone unemployment rate ticking higher to 8.5% in October from 8.3% the previous month.