EGB/GILT: Having been closed on........>

BOND SUMMARY: EGB/GILT: Having been closed on Friday due the Labour Day public

holiday, EGBs have got off to a weak start with selling seen across the board.

- April manufacturing PMI data this morning confirm the deep contraction in the

euro area. While the Italian print was broadly in line with expectations, there

was a significant miss for Spain(30.8 vs 34.0 survey).

- The bund curve has bear steepened with the 2s30s spread up 2bp. 

- OATs have underperformed the core with yields 2-7bp higher on the day and the

long end of the curve 5bp steeper.

- BTPs have joined the sell-off with yields 2-5bp higher.

- Gilts have traded firmer, albeit with price action contained. Current yield

levels: 2-year 0.022%, 5-year 0.092%, 10-year 0.234%, 30-year 0.582%.

- Global geopolitical tensions are simmering in the background with US President

Donald trump ratcheting up criticism of China's handling of the coronavirus, and

Secretary of State Mike Pompeo reiterating previous statements made by the

president on the possibility of the virus originating from a lab in Wuhan.