Global government bonds stay better....>

BOND SUMMARY: Global government bonds stay better bid, with equities still

offered.

-EGB's have been underpinned on the Virus contagion risks, but also by a poor

set of data from France and Germany on the open.

-France saw a miss on QoQ and YoY GDP, followed by a poor German Retail sales

print.

-Local banks note that Germany tends to revise/correct the data at year end,

which could explain the volatile release.

- Peripherals are within ranges, with Italy 10s sitting at 0.8bp wider against

Germany.

- Italy's government is set to discuss declaring a state of national emergency

after confirming the first two cases of the new coronavirus

_ Gilts started the session lower, on the better GBP bid, following the hawkish

BoE yesterday, but the contract saw a knee-jerk reaction when the first cases of

the coronavirus was reported to have reached the UK.

-US treasuries are flat on the day, but felt better bid on the margin.