Govies are favoured as Asian Equities plummets

EGBs extended gains on FTQ (Flight to Quality) flows, after Asian Equities plummeted further during our morning European session.

• The move in Asia spilled over into EU and US Equities.
• Bund has once again tested the initial Yield support -0.442% which equated to 176.30 today.
• We did print a 176.32 high today, and yield was also tested yesterday, down to -0.449% (176.49 in futures).
• Peripherals are mostly wider, with Greece leading by 1bp.
• Gilts are trading inline with EGBs, and the curve traded bull flatter.
• UK 5/30s eye yesterday's low at 69.356, also the flattest level in a year (14/07/2020), now at 69.952.
• US Treasuries saw similar price action, with investors moving into safe haven, after US Equities move into the red.
• US 5/30s is flatter, but trade within yesterday's range.
• Looking ahead, ECB de Cos is the notable speaker.
• On the data front, sees US prelim Durable Goods.
• Earning season continues, today includes, 3M, GE, Alphabet, Visa, Microsoft, Apple and Starbucks.
• Finally, we get US 5yr notes later