EGB/GILT: As continental equities......>

BOND SUMMARY: EGB/GILT: As continental equities resume their slide (Eurostoxx

futures are, again, flirting with market correction), core EGBs have been

supported from the off. Coronavirus concerns remain front and centre as case

numbers outside of China (particularly in South Korea, Italy and Japan) tick

higher while the situation appears to be moderating slightly inside the country.

- Italy sold 5- and 1-yr bonds to adequate demand, raising E7.5bln against a

target of E6.25-7.5bln. Yields at auction were slightly higher, but broadly

inline with market moves since the last sale. BTPs sit slightly lower but are

above the week's lows.

- The German curve trades slightly steeper, with 2s/10s higher by around 1bps as

the short-end outperforms. Similar moves are noted in the UK sovereign curve

after the UK government confirmed its willingness to exit the transition period

onto WTO trade terms if a suitable EU/UK deal is not achievable this year. UK

2yr yield hit the lowest level since October in response.

- Bund futures are up 0.33 at 176.16 with 10y Bund yields down 1.6bp at

-0.524% and Schatz yields down -2.6bp at -0.735%.