EGB/GILT: Bunds have been the..........>

BOND SUMMARY: EGB/GILT: Bunds have been the outperformers in global core fixed

income, breaching the highs seen yesterday and outperforming both USTs and

gilts. BTP-Bund 10-year spreads had risen over 150bp but have come off their

highs.

- The market continues to focus on the spread of the coronavirus outside of

China with cases and deaths in South Korea increasing and a Korean flight

attendant having tested positive. However, in Europe the focus has been on the

outbreak in Italy and the spread to the Canary Islands where an Italian doctor

has tested positive and a hotel of 1,000 people has now been quarantined.

- EU member states have agreed the mandate for negotiations with the UK. A press

conference will be held later today.

- Bund futures are up 0.25 today at 175.83 with 10y Bund yields down -2.1bp at

-0.504% and Schatz yields down -1.6bp at -0.696%. BTP futures are down -0.38

today at 147.14 with 10y yields up 2.5bp at 0.991% and 2y yields up 2.6bp at

-0.137. Gilt futures are up 0.09 today at 135.00 with 10y yields down -0.6bp at

0.533% and 2y yields down -0.2bp at 0.399%.