EGB/GILT: There was another strong.....>

BOND SUMMARY: EGB/GILT: There was another strong open to European bond markets

this morning with Bunds quickly rallying to hit a yield of as low as -0.622% and

10y gilt yields briefly falling below 0.40%. Coronavirus concerns continue to

rule the market and data has largely been ignored. Fixed income has come off of

its highs ahead of the US session.

- German state CPI has come in a bit higher than the consensus for the national

print would suggest while French and Italian CPI were a little weaker than

expected.

- Peripheral spreads widened across the board, led by Italy. BTP-Bund spreads

are almost 10bp off their highs of the day but are still over 9bp wider than

yesterday's close at 171bp.

- Bund futures are up 0.67 today at 177.25 with BTP futures down -0.73 at 145.80

and OAT futures up 0.41 at 168.65.