Pausing After Covid Concerns

After seeing Bunds moving higher and peripheral spreads widening
on both Monday and Tuesday, today has seen some respite from these moves.
After a quiet morning Bunds are a bit lower this afternoon (although still well
above yesterday's lows) while peripheral spreads have generally tightened a bit
but semi-core spreads have widened.

• Covid headlines have not moved the docket so much across Europe today,
  unlike the past two days which have seen second wave concerns driving
  Bunds higher and spreads wider.
• The US has confirmed it will withdraw 12,000 troops from Germany. This
  comes after months of Trump accusing Germany of not meeting the NATO
  spending targets.
• Bund futures are down -0.14 today at 176.99 with BTP futures up 0.15 at
  147.02 and OAT futures down -0.17 at 168.46.