EGB/Gilt: Trading Lower

European government bonds mainly trade weaker this morning while equities have uniformly pushed higher.

• Having initially opened lower, gilts recovered early losses but subsequently sold off again with yields now holding around the morning's highs and 3-4bp above the Friday close.
• Bund yields are up 3-6bp with the curve bear flattening.
• OATs have traded progressively weaker through the morning with yields broadly 2-5bp higher.
• BTPs opened stronger, but have sold off through the morning, albeit remaining above the Friday close. The curve is 1-2bp flatter.
• On the data front, Eurozone Q4 GDP came in slightly weaker than expected on a Q/Q basis (0.3% vs 0.4%), while the Y/Y figure printed in line with consensus (4.6%). Italian GDP for the same period came in above expectations (0.6% Q/Q vs 0.5% and 6.4% Y/Y vs 6.2%).
• Regional German CPI data for January has been mixed relative to last month's data. The national estimate will be published at 1300GMT. Meanwhile, the preliminary Spanish CPI print for January came in at 6.1% Y/Y vs 5.5% consensus and 6.6% the previous month.
• Focus later today will shift to the MNI Chicago PMI update for January.