The biggest story in global bond.......>

BOND SUMMARY: The biggest story in global bond markets is the reaction to the

ECB's E750bln stimulus package released last night. On the open all EGB spreads

(peripheral and semi-core) narrowed sharply, with BTP spreads narrowing more

than 100bp at one point. Some of the initial narrowing has now been reversed but

spreads are still considerably narrower on the day. As an example 10y BTP

spreads are now 71bp tighter while GGB spreads are 167bp tighter. Most semi-core

10y spreads are around 15-20bp tighter on the day.

- Elsewhere the German IFO preliminary data was released and the expectations

component fell to a level lower than seen in the eurozone sovereign crisis with

lower levels only seen on two prints during the financial crisis. Take-up of the

ECB's TLTRO III operations will be closely watched at 10:30GMT.

- Through the rest of the day, focus will continue to remain on policy responses

to the coronavirus with some media reporting that London may well join Europe on

lockdown.

- TY1 futures are up 0-12+ today at 134-15 with Bund futures up 0.74 at 169.53

and Gilt futures down -0.53 at 130.62.