EGBs-GILTS CASH CLOSE: Bear Steepening Resumes Apace

UK and German long-end yields closed near session highs as the bear steepening move in both curves resumed apace.

• This was despite steady weakness in equities - European FI couldn't ignore the gravity exerted by multi-month highs reached in Treasury yields following the US long weekend.
• UK 5s30s hit a fresh post-2018 high; for Germany, a post-June 2020 high.
• Italy sold E14bn in 10Yr nominal (E10bn) and 30Yr linker (E4bn) BTPs via syndication. Periphery spreads fairly well-behaved in general.
• Fairly light on speakers and data (German ZEW didn't move the needle).
• Wednesday's data highlight is UK Jan CPI; supply comes from Germany and the UK.

Closing yields/10-Yr Spreads to Bunds:

• Germany: The 2-Yr yield is up 0.5bps at -0.69%, 5-Yr is up 1.4bps at -0.634%, 10-Yr is up 3.3bps at -0.348%, and 30-Yr is up 4.2bps at 0.163%.
• UK: The 2-Yr yield is down 0.4bps at -0.037%, 5-Yr is up 2.1bps at 0.127%, 10-Yr is up 5bps at 0.621%, and 30-Yr is up 4.9bps at 1.223%.
• Italian BTP spread up 1.2bps at 92bps / Spanish spread up 0.1bps at 64.2bps