EGBs/GILTs: Equities have stabilised...>

BOND SUMMARY: EGBs/GILTs: Equities have stabilised for now following a

succession of policy interventions from the Fed and ECB. Market chatter

continues around yesterday's ECB policy package and the poor communication

strategy. 

- The UK's chief scientific adviser has warned that the coronavirus is likely to

be an annual virus. 

- Today's final February CPI prints for Germany, France and Spain have been

rightly ignored by the market. 

- The gilt curve has bear steepened with 30- to 50-year yields up 13bp.

- Short-dated bunds are relatively flat, while 00- to 30-year yields are up

10bp.

- It is a similar story for French OATs. Current yield levels: 2-year -0.706%,

5-year -0.385%, 10-year -0.05%, 30-year 0.537%. 

- Price action in BTPs is less extreme relative to yesterday's reaction to the

ECB press conference, with spreads still wide over bunds.