EGBs/GILTs: Sovereign bonds are........>

BOND SUMMARY: EGBs/GILTs: Sovereign bonds are selling off hard across the board

as the market digests the raft of fiscal spending announcements in recent days.

Indications that Italy could decide to extend its lockdown has added further

fuel to the mix.

- BTPs have been the hardest hit with yields up 27-52bp with the short-end

leading the charge. Spreads over bunds have similarly blown out.

- Bunds have similarly faced selling pressure, albeit with price action somewhat

more contained. The curve has bear steepened with 2s30s trading up 10bp.

- The slide in French OATs is in the middle of the pack with yields 7-20bp

higher. Current yield levels: 2-year -0.517%, 5-year 0.008%, 10-year 0.414%,

30-year 0.933%

- The gilt curve has steepened sharply with the 2s10s spread 16bp wider on the

day.