Trump's Covid Early Driver on Payrolls Day

President Trump's Covid-19 positive test result was the main driver of fixed income markets, with the rest result being confirmed around 1am ET/6am BST after reports through the Asian session that he would be self isolating due to his exposure to a person with the virus.

• Treasuries and Bunds are both higher this morning on the news while gilts continue to be driven by Brexit headlines. Again there have been a number of conflicting reports but the main takeaway has been that Boris Johnson will meet Ursula van der Leyen tomorrow for further talks in Johnson's first participation since June. This is being seen as a positive and potentially the move into the final "tunnel" stage of negotiations. Note that the expected press conference of the chief negotiators Barnier and Front is now not expected to go ahead.
• Later today focus will turn to the September US employment report with final prints of durable goods, and Michigan sentiment also due for release.
• TY1 futures are up 0-3 today at 139-20+ with 10y UST yields down -1.2bp at 0.667% and 2y yields down -0.5bp at 0.124%.
• Bund futures are up 0.17 today at 174.83 with 10y Bund yields down -1.0bp at -0.546% and Schatz yields down -0.7bp at -0.718%.
• Gilt futures are down -0.07 today at 135.90 with 10y yields up 0.4bp at 0.237% and 2y yields up 0.1bp at -0.48%.