* Euro zone periphery govt bond yields http://tmsnrt.rs/2ii2Bqr
By Olga Cotaga
LONDON, Nov 23 (Reuters) - Euro zone government bonds were
little changed despite positive news on a AstraZeneca
vaccine, as investors focused on the major economies under
strict lockdowns and fact COVID-19 cases are not receding.
AstraZeneca said on Monday its vaccine for the coronavirus,
developed along with the University of Oxford, showed an average
efficiency of 70%, making it the last of the three big
pharmaceutical players to report late-stage results.
But more than 58.32 million people are reported to be
infected by the coronavirus globally and 1,385,595? have died,
according to a Reuters tally.
"The covid pandemic, and associated social distancing
measures, remains front and centre on investors' minds," said
ING analysts in a note to clients. "This, combined with still
cautious central banks, would reduce euro zone rates upside."
they said.
Benchmark German 10-year Bund yields were last flat at
-0.592%, a two-week low. Peripheral yields were also
flat, with Italian yields 0.59%, close to the 0.57%
record low it fell to recently.
The euro zone flash Markit Composite Purchasing Managers'
Index for November was due at 0900 GMT. Economists polled by
Reuters forecast that the index would fall to 45.8 from 50 the
month before.
However, French and German composite PMIs, released earlier,
came in higher than analysts expected, suggesting a less
gloomier picture.
The spread between German and Italian government bond yields
-- essentially the premium Italy is paying for its
debt -- stood at 117 basis points, close to a two-and-a-half
year low.
ING analysts see the spread between euro zone and U.S.
government bond yields shrinking, too, given that "the current
wave is at an earlier stage in the U.S. and so we expect
pessimism to be the dominant tone in U.S. markets," they said.
The spread stood at -143 basis points, near
the half-year low touched earlier this month.
(Reporting by Olga Cotaga, editng by Larry King)