EGB/GILT: After a weak start to the....>

BOND SUMMARY: EGB/GILT: After a weak start to the day following a more

risk-positive Asian session, EGBs and gilts moved higher despite little in the

way of new news. 10y gilt yields have moved to their lowest level since an

intraday spike lower in September when Brexit concerns reached their peak. A

close here would be a new record low.

- Bunds have broken below the -0.65% yield level. Peripheral spreads have also

widened this morning, led by BTP-Bund spreads which at the time of writing are

10.5bp wider at 181bp.

- Eurozone and UK PMIs had little impact on markets, but the survey period ended

before the outbreak in Northern Italy intensified.

- Gilt futures are up 0.55 today at 135.95 with 10y yields down -5.2bp at 0.389%

and 2y yields down -6.7bp at 0.239%.

- Bund futures are up 0.72 today at 178.18 with 10y Bund yields down -4.7bp at

-0.656% and Schatz yields down -5.9bp at -0.835%.

- BTP futures are down -0.49 today at 145.27 with 10y yields up 6.2bp at 1.162%

and 2y yields up 4.5bp at -0.1%.