It has been a largely risk-on day for...>

EGB SUMMARY: It has been a largely risk-on day for markets, largely due to

follow through from the Fed's announcement yesterday on purchases of corporate

bonds. Sentiment in the afternoon has also been helped by news that an Oxford

University study had shown a cheap "and widely available drug" substantially cut

the risk of death for Covid-19 patients, whether on oxygen or ventilators.

- Then another turnaround as COVID 2nd wave fears re-emerged on headlines from

Beijing and Florida.

- Bunds moved lower early, largely in line with gilts but outperforming

Treasuries. Peripheral spreads tightened, led by BTPs, though now off lows.

** Latest levels:

* Sep Bund futures (RX) up 3 ticks at 175.55 (L: 174.9 / H: 175.55)

* Germany: The 2-Yr yield is up 0.1bps at -0.658%, 5-Yr is up 0.3bps at -0.648%,

10-Yr is up 0.6bps at -0.44%, and 30-Yr is up 0.5bps at 0.043%.

* Sep BTP futures (IK) up 35 ticks at 142.08 (L: 141.6 / H: 142.42)

* Italy / German 10-Yr spread 6.1bps tighter at 184.3bps

* Sep OAT futures (OA) up 26 ticks at 166.68 (L: 165.98 / H: 166.7)