EGB/GILT: The risk-off theme remains...>

BOND SUMMARY: EGB/GILT: The risk-off theme remains in place with risk sentiment

continuing to be driven by the trajectory of COVID-19 in the Americas. 

- The gilt curve has bull flattened with cash yields 1-6bp lower and the 2s30s

spread 5bp narrower.

- Bunds have similarly traded firmer with cash yields 1-3bp lower on the day.

- BTPS have sold off slightly and spread over bunds have widened.

- Supply this morning came from the UK (Gilt, GBP1.10bn) and the Italy (BTPEi,

E2bn & CTZ, E3.5bn). Bond issuance is now completed for the week. There will be

a BOT auction tomorrow.

- The ECB earlier announced a new EUR repo facility for non-euro area central

banks. The EUREP is a precautionary backstop facility created to mitigate the

adverse impacts of COVID-19. All requests by non-euro area central banks will be

evaluated by the Governing Council on a case-by-case basis and with funding

incurring a higher cost than under existing repo lines. The range of eligible

collateral will also be narrower.