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EGB/GILT: European govies have.........>

BOND SUMMARY
BOND SUMMARY: EGB/GILT: European govies have rallied this morning with sovereign
curves bull flattening alongside a sell-off in equities and fresh losses for
oil. 
- The Fed's relatively downbeat assessment of the economic outlook, reinforced
by a commitment to keep the policy rate near zero until the end of 2022, has
been a contributing factor.
- Gilts have rallied across the curve with the long-end marginally
outperforming. The 2s10s spread has traded down 5bp.
- Bunds are similarly bid with cash yields 2-5bp lower on the day.
- OATs have marginally outperformed bunds.  
- Supply this morning came from the UK (gilts, GBP6.5bn) and Italy (BTPs,
E9.5bn).
- The market has appeared to have little difficult in absorbing Italian supply
with BTPs rallying strongly and yields now 4-9bp lower on the day.

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