Last checked at 
* Euro zone periphery govt bond yields http://tmsnrt.rs/2ii2Bqr
(Updates prices, adds reference to the EU's 15-year COVID-19
recovery plan bond)
By Olga Cotaga
LONDON, Nov 23 (Reuters) - Euro zone government bonds were
little changed despite positive news on a AstraZeneca
vaccine on Monday as investors focused on the major economies
under strict lockdowns and the fact that COVID-19 cases are not
receding.
Britain’s AstraZeneca said its vaccine for the novel
coronavirus could be around 90% effective without any serious
side effects, making it the latest pharmaceutical company to
report on 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.
And many of Germany's 16 federal states favour extending a
partial shutdown meant to slow the spread of the COVID-19
pandemic.
"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."
Benchmark German 10-year Bund yields were last flat at
-0.577%, after falling to a two-week low of -0.592%.
Peripheral yields were lower, with Italian 10-year BTP yields
down 1.3 basis points at 0.583%, close to its recent
0.57% record low.
Portuguese 10-year government bond yields were flat, but at
0.031%, they were close to negative territory.
Euro zone business activity contracted this month as renewed
lockdowns forced much of the bloc's dominant service industry to
close temporarily. Investors were indifferent; yields were
little changed.
The spread between German and Italian government bond yields
-- essentially the premium Italy is paying for its
debt -- stood at 115.4 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.
Elsewhere, the European Union hired a syndicate of banks for
the sale of a new 15-year bond as part of its 'SURE' COVID-19
recovery plan, according to a lead manager memo seen by Reuters.
The bond, labelled as a social bond, and due July 4 2035,
will be launched "in the near future, subject to market
conditions", the memo said, a phrase debt management offices
usually use a day before a sale.
Belgium raised 1.494 billion euros ($1.258 billion) in an
OLO (linear bond) auction on Monday, the Belgian debt agency
said.
Belgium's 10-year government bond yields were last steady at
-0.387%.
Credit-rating agency Moody’s is expected to review Belgium's
rating on Friday, which currently stands at Aa3.
ING said a total of 14 billion euros were expected in
issuance this week from Belgium, the Netherlands and Italy.
Rabobank estimated a total of 11 billion euros.
(Reporting by Olga Cotaga, editing by Larry King and Angus
MacSwan)
