Safe haven are favoured this morning

EGBs saw better safe haven interest this morning, and despite some hope that a US stimulus could be negotiated, Equities have been better offered during our European morning session.

• Most of the action has been in the BTP, as the 10yr yield finally broke out through its all time low, now at 0.721% at the time of typing.
• Bund BTP spread is at its tightest since May 2018 at 126.7bps.
• Gilts are also better bid, after the UK industrial Production data miss, but Covid concerns are at the forefront, after the UK recorded 17,540 new cases yesterday vs 3,378 on Wednesday.
• US Treasuries have held onto gains, but are trading flat, mostly helped by the EU core Bonds outperformance.
• US curve is flat, as we await for the US to come in.
• Looking ahead, US Wholesale Inventories is the only data of note, but this will be the final reading, so unlikely to bring much volatility in the markets.
• Fed Barkin speaks to the regional Chamber of Commerce.
• All eyes remains on any new US stimulus development.