Euro area sovereign bonds have been.....>

EGB SUMMARY: Euro area sovereign bonds have been bid today, with core and

periphery bonds broadly rallying. 

- It has felt like a relatively quiet session compared to the previous week and

perhaps reflections an exhaustion of the panic selling. 

- The Germany bund curve has bull flattened with the 2s10 spread 12bp narrower

and the 2s30s down 14bp.

- French OAT yields beyond the 3-year maturity are down 11-13bp. 

- The short-end of the BTP curve has outperformed with the 2-year benchmark

yield down 21bp.

- UK Chancellor of the Exchequer Rishi Sunak has announced further fiscal

measures to support households and firms including a commitment to paying up to

80% of salaries up to Stg2,500/month for those at risk of losing their jobs.

This could pave the way for similar policies across Europe in the coming weeks.