EGB/GILT: Risk has recovered...........>

BOND SUMMARY: EGB/GILT: Risk has recovered somewhat this morning with equities

higher (albeit off of yesterday's highs). Gilts have seen 10+ year yields hit

record lows as anticipation of the BOE following up the Fed's emergency rate cut

yesterday with a cut of its own. There had been rumours in the market that a cut

could have been announced as early as this morning, but that has obviously not

come to pass.

- 10y gilt yields hit a record low of 0.335% but have since risen off the lows

to 0.369%.

- Elsewhere the ECB has announced that it is cancelling all non-essential travel

and visits but has not said that there will be any impact on the monetary policy

meeting.

- Peripheral spreads have seen decent tightening this morning, with BTP-Bund

spreads 6.4bp tighter on the day at the time of writing at 155bp.

- Bund futures are down -0.15 today at 177.59 with BTP futures up 0.73 at 147.95

- Gilt futures are up 0.21 today at 136.13 with 10y yields down -1.9bp at 0.369%

and 2y yields down -2.1bp at 0.203%.