Treasuries and Bunds are little........>

BOND SUMMARY: Treasuries and Bunds are little changed on their respective closes

yesterday. However, this only tells part of the story as both sold off in early

Asian trading before hitting new cycle highs but have since moved off of those

levels. The market continues to bounce around on coronavirus headlines. We note

that in earlier trading, the US 10y yield hit a record low.

- Gilts have been the outperformers in core fixed income space today. Headlines

that some Budget measures will have to be delayed to balance the books and meet

the fiscal rules have let to some reduced expectations of the stimulatory effect

of the Budget next month. Gilts had avoided breaching their January highs

yesterday, despite Bunds and Treasuries breaking higher, but today the 0.50%

yield support gave way with UK 10y yields hitting their lowest levels since Oct.

- ECB President Lagarde is due to speak at 13:30GMT as she meets the German

regional president of Hesse. It is not a natural forum for monetary policy talk

but she may be asked questions, particularly given coronavirus developments.

- TY1 futures are down -0-4+ today at 132-31+ with Bund futures down -0.10 at

175.92 and Gilt futures up 0.20 at 134.71.