EGB/GILT: The focus today has been.....>

BOND SUMMARY: EGB/GILT: The focus today has been on the BoE, which increased

asset purchases by GBP100bn to GBP745bn and held the bank rate at 0.10% as

expected.

- Gilts have been bid ahead of the BoE decision, but sold off sharply on the

back of an announced slowdown in purchases. The Sep-20 gilt future dropped by

~50 ticks to 137.20 on the announcement.

- There was some spillover to EGBs, which similarly sold off.

- Bunds now trade mixed on the day. Current yield levels: 2-year -0.6555%,

5-year -0.6298%, 10-year -0.3978%, 30-year 0.035%.

- The OATs curve has flattened on the back of the long-end rallying and the

shorter end selling off. The 2s30s spread is 4bp narrower.

- BTPs have traded soft at the front end and rally across much of the curve. The

10/15-year segment is slightly outperforming with yields 3bp lower on the day.

- Supply this morning came from Spain (Bonos/Oblis, EUR5.88bn), France (OATS,

E11.0bn & Linkers, E2.53bn) and Ireland (bills, E0.75bn).