EGBs/GILTs: It has been a relatively...>

BOND SUMMARY: EGBs/GILTs: It has been a relatively quiet session for EGBs with

the core trading close to unch on the day. Elsewhere, equities are posting

further losses, oil has bounced and the dollar is on the front foot.

- Supply this morning came from the UK (GBP5.5bn) and Ireland (EUR1.5n).

- Reports this morning indicate that the UK International Trade Secretary is

willing to reduce some agricultural tariffs to bolster the prospects of the

US-UK trade deal. With Brexit looming and the economy shut down by COVID-19, the

government is facing increased pressure to secure new trade arrangements.

- Gilts have traded softer with yields now a touch above yesterday's close.

Current yield levels: 2-year -0.037%, 5-year 0.047%, 10-year 0.204%, 30-year

0.579%.

- The bund curve has slightly flattened with the 2s10s spreads down 1bp.

- It is a similar story for OATs where price action has been relatively

contained.

- BTPs have sold off with the short-end underperforming and cash yields up to

3bp higher.