European govvies have broadly..........>

BOND SUMMARY: European govvies have broadly rallied this morning, albeit with

Italian and Greek bonds trading weaker.

- All eyes are on the FOMC meeting later today and the ECB Governing Council

meeting tomorrow. Consensus expects no significant change in monetary policy at

the ECB meeting, with a minority expecting an increase in the PEPP.

- Despite consistently signalling that the UK government does not want to

prematurely reverse the lockdown measures, regular reports of a softening stance

and signs of gradual relaxation across Europe suggest that Downing Street is

inching closer to an exit strategy.

- Gilts have been bid with the curve trading flattening. 30/40/50-year benchmark

yields are down 3bp on the day.

- Bunds similarly trade firm with yields 2-3bp lower.

- OATs are slightly outperforming with 3/5-year yields down 4bp.

- BTPs have given back some of yesterday's gains after Fitch cut the sovereign

credit rating and partially offset S&P's decision last Friday to maintain the

existing rating. BTP yields are up 2-4bp.