It has been a risk-on,..................>

EGB SUMMARY: It has been a risk-on, re-inflationary day with European equity

indices moving 2-4.5% higher on the day, led by the DAX. Hopes of a COVID

vaccine have increased while large parts of Europe have seen some further easing

of lockdown measures. A number of European regulators also withdrew the ban on

short selling equities.

- It has been a fairly active day of issuance with Germany, the Netherlands and

France issuing bills, Slovakia and Belgium selling bonds (plus announcing a

10-Yr $ syndication) and Italy starting retail sales of the new BTP Italia.

- The largely risk-on mood has seen Bunds move lower, albeit not as much as

higher beta Treasuries, while peripheral spreads are all generally tighter on

the day, led by BTP-Bund spreads. ** Latest levels:

* Jun Bund futures (RX) down 43 ticks at 173.31 (L: 173.25 / H: 174.09)

* Germany: The 2-Yr yield is up 1.5bps at -0.713%, 5-Yr is up 2bps at -0.706%,

10-Yr is up 2.7bps at -0.504%, and 30-Yr is up 3.2bps at -0.063%.

* Jun BTP futures (IK) up 66 ticks at 138.43 (L: 137.52 / H: 138.85)

* Italy / German 10-Yr spread 9.9bps tighter at 229.5bps