It is slightly risk off this morning...>

BOND SUMMARY: It is slightly risk off this morning with core govvies firming,

the periphery selling off and equities a touch weaker. This is somewhat at odds

with the continued rally in front oil on the back of expectations that demand

will pickup as Europe reverses lockdown measures. 

- With this week's FOMC meeting now in the rear view mirror, attention shifts to

today's ECB Governing Council meeting. Consensus expects no major policy

announcements, while there are a minority calling for an expansion of PEPP by

E250-500bn and further adjustments to the collateral framework.

- UST cash yields are 1-2bp lower on the day.

- Gilts are similarly bid with the very long-end outperforming.

- The Jun-20 bund future trades at 173.39 at the high of the day.

- BTPs have traded weaker with cash yields up 1-2bp and the curve holding flat.

- European data releases this morning showed a hefty contraction in Q1 French

and Spanish GDP (-5.8% and -5.2% Q/Q, respectively) and a surge in German

unemployment for April (373k vs 74.5k consensus)