European govvies have traded mixed......>

EGB SUMMARY: European govvies have traded mixed through the session against a

backdrop of heightened uncertainty over the potential policy response to the

coronavirus, as well as the efficacy of any measures in curtailing the economic

impacts.

- Focus shifts to the ECB meeting tomorrow, particularly in light of the Bank of

England's emergency policy rate cut today. The ECB is widely expected to ease

monetary policy, but opinions differ on what form that easing will take. There

is a small majority of analysts that expect the ECB to provide additional term

funding to support the SME sector. 

- BTPs have been the big mover on the day, with yields 10-12bp lower. 

- SPGBs have joined the rally with the longer-end outperforming. The 2s10s

spread is 8bp narrower.

- Bunds have weakened slightly, with yields 1-3bp higher. Current yield levels:

2-year -0.951%, 5-year -0.924%, 10-year -0.766%, 30-year -0.452%.

- Italy will come to market tomorrow for a E5.5-7.0bln BTP tap amid particularly

challenging market conditions.