EGBs/Gilts: It remains broadly.........>

BOND SUMMARY: EGBs/Gilts: It remains broadly risk-on with core govvies selling

off, the periphery rallying and equities pushing higher. Oil is on the backfoot

again as supply concerns push front prices lower.

- Although the UK PM has appeared cautious in easing lockdown restrictions too

early, momentum across Europe is building towards a gradual relaxation which is

buoying the risk-on mood.

- Gilts have traded lower with yields 1-2bp higher on the day and the curve

trading flat.

- German bunds have similarly weakened. Current yield levels: 2-year -0.709%,

5-year -0.659%, 10-year -0.472%, 30-year -0.094%.

- OATs have traded mixed with the short end selling off and the longer end

rallying. The 2s10s spread has traded down 4bp. 

- BTPs have rallied strongly this morning after Italy avoided a credit rating

downgraded at the end of play on Friday. The short end is outperforming with

2/3/5/7-year yields down 12-14bp.