The main theme this morning has been....>

EGB SUMMARY: The main theme this morning has been a terrific performance by the

Eurozone periphery. Initially, this was led by Spain and sources said this was

due to a possible S&P ratings upgrade on Friday that might create some forced

buying. 

- Bund-BTP and Bund-Bonos 10Y spreads are each 5bp+ tighter to Germany at

Bund-PGB is setting an 8 year low at 111.2bp according to Tradeweb, a 4.5bp

narrowing today.

- Bunds have oscillated a great deal but the net movement in yields is 1.2bp to

0.581% and most of that change was achieved at the open as the Brexit transition

deal pressured bond prices in the UK and the Continent. 

- Germany sold E4bln of its 2Y Schatz benchmark. The auction was technically

covered if not witnessing strong demand.

- Japanese markets are closed tomorrow and with Good Friday later in the month,

any month-end selling of EGBs has few trading days to be enacted.

- The German ZEW expectations index fell to 5.1 (low since Sep-16) in March from

17.8.