/EGBs-GILTS CASH CLOSE: A big move into the...>

BONDS: /EGBs-GILTS CASH CLOSE: A big move into the close this afternoon upon the

Franco-German deal on a EUR500bln COVID-19 recovery fund, which collapsed

periphery spreads and sent Bund yields sharply higher.

- 10-Yr BTP spreads/Bunds dropped as much as 17bps after the announcement,

closed about 2bps off the lows and 25.4bps lower on the day. 

- Bund yields merely continued their march higher that began in the morning amid

a big jump in equities, 10bps up from lows. Strong bear steepening, also seen in

Gilts, where 2-Yr flipped back positive from early foray in negative territory.

* Germany: The 2-Yr yield is up 1.7bps at -0.711%, 5-Yr is up 2.4bps at -0.702%,

10-Yr is up 3.4bps at -0.497%, and 30-Yr is up 4.1bps at -0.054%.

* UK: The 2-Yr yield is up 0.6bps at 0.004%, 5-Yr is up 0.6bps at 0.084%, 10-Yr

is up 2.6bps at 0.257%, and 30-Yr is up 3.1bps at 0.652%.

* Italy / German 10-Yr spread 25.4bps tighter at 214bps

* Spain / German 10-Yr spread 9.1bps tighter at 120bps

* Portugal / German 10-Yr spread 9.1bps tighter at 131.9bps

* Greece / German 10-Yr spread 13.8bps tighter at 246bps