Vaccine Optimism Drives Markets

Risk is on the front foot this morning after Russian President Putin confirmed that the Russian Ministry of Health had given regulatory approval to a COVID-19 vaccine produced by the Gamaleya Institute.

• Core bonds are lower globally with gilts having seen the biggest moves of the day but have not broken through Friday's lows. US TY1 futures have moved to their lowest levels of the month. European equities are generally around 2.5% higher.
• As would be expected on positive COVID news, Eurozone peripheral spreads have tightened this morning with BTP spreads seeing the biggest moves.
• There is little on the calendar today except a webinar appearance from the Fed's Barkin and a speech by Fed's Daly.
• TY1 futures are down -0-5+ today at 139-22+ with 10y UST yields up 2.1bp at 0.598% and 2y yields up 0.6bp at 0.138%.
• Bund futures are down -0.36 today at 177.14 with 10y Bund yields up 2.2bp at -0.506% and Schatz yields up 1.3bp at -0.698%.
• Gilt futures are down -0.41 today at 137.71 with 10y yields up 3.4bp at 0.163% and 2y yields up 2.4bp at -0.10%.