The decent bounce in equities..........>

BOND SUMMARY: The decent bounce in equities Tuesday (EuroStoxx traded higher by

as much as 3% - best intraday gain since 2016) has pressured core bonds on both

sides of the Atlantic, helping drag prices off the multi-year highs printed

yesterday across many contracts. The moves come despite some cold water being

thrown over hopes that markets could see co-ordinated action from the G7 as soon

as today, after MNI reported that CBs are more likely to act independently and

the group will instead vow to take action as necessary. Peripheral bonds are

seen stronger, with Italian BTPs leading the rally - the contract came under

considerable virus-related pressure and now leads markets tighter vs. GE.

- As a result, German, UK, US yield curves are generally steeper but,

interestingly, the front-end of the US curve continues to see strength as new

multi-year lows are printed in 2yr yields.

- Data has been relatively few and far between. Eurozone CPI estimate showed a

slowdown in inflation to 1.2%, but the drop was largely as expected. 

- TY1 futures are down 0-20 today at 134-15+ with Bund futures down 0.97 at

174.06 and Gilt futures down 0.55 at 135.18.