EGBs/GILTs: Equities continue to.......>

BOND SUMMARY: EGBs/GILTs: Equities continue to slide and govvies are selling off

across the board, with the euro area periphery underperforming.

- This morning's UK labour market data for January had understandably limited

market reaction given that we are only now starting to see the impact on

employment from the coronavirus crisis. 

- Gilt yields are 4-9bp higher and the curve has bear steepened.

- The EU continues to tighten restrictions on social movements and is inching

closer to a full lockdown of external borders. For the time being, national

governments are taking unilateral decisions on travel restrictions.

- The bund curve has steepened with the 2s10s spread up 5bp.

- Spanish government bonds are the worst performing among the big four. SPGB

yields at the longer end are up 15-16bp.

- BTPs initially rallied soon into the session, but subsequently gave up all the

early morning gains.