EGB/GILT: European government bonds....>

BOND SUMMARY: EGB/GILT: European government bonds have started the week on a

firm footing in the wake of last week's equity losses and heavy EGB/bill

issuance. Concerns over infection rates in the US and China are feeding risk-off

sentiment.

- Gilts opened higher but subsequently gave back a lot of the early gains.

Yields are now within 2bp of Friday's closing levels. 

- Bunds are slightly bid and the curve marginally flatter on the day. 

- It is a similar story for French OATs, with the belly slightly outperforming.

Current yield levels: 2-year -0.5795%, 5-year -0.4848%, 10-year -0.0597%,

30-year -0.6756%.

- BTPs have rallied sharply with yields 3-7bp lower across the curve.

- Supply this morning came from Germany (bubills, E3.08bn), the Netherlands

(DTCs, E4.82bn) and Slovakia (SlovGBs, E959mn).

- There will be a slate of central bank meetings this week which will include

BoJ, BoE, SNB and Norges Bank. The BoE is widely expected to increase asset

purchases, with consensus targeting a GBP100bn expansion.