Morning Trends Continue

The themes of the morning have continued with Bunds moving higher and
peripheral spreads widening.

• Markets continue to focus on a potential second wave of Covid cases in
  Spain but there is little more colour on the situation than this morning.
• Spanish spreads haven't been hit any more than other peripheral spreads
  with all peripherals seeing spreads around 4bp wider on the day.
• This is despite Spanish stocks being hit harder than other stocks across the
  region.
• Bund futures are up 0.61 today at 176.70 with 10y Bund yields down -3.6bp
  at -0.485% and Schatz yields down -1.2bp at -0.674%.
• BTP futures are up 0.08 today at 146.97 with 10y yields up 0.3bp at 0.999%
  and 2y yields up 0.9bp at -0.64%.
• OAT futures are up 0.54 today at 168.39 with 10y yields down -3.3bp at
  -0.182% and 2y yields down -0.8bp at -0.628%.