EGBs-GILTS CASH CLOSE: Can't Resist Soaring Equities

Core yields shrugged off higher equities for most of Tuesday's session, but UK and German yields bottomed out around 1500GMT and began moving sharply higher as European stocks rocketed following the U.S. cash equity open. Not to be outdone, 10-Yr BTP yields hit a record low (0.596%).

• French and German business confidence data were slightly weaker than expected, reflecting November lockdown woes, but this did not have a lasting impact. Speakers including ECB's Lagarde also did not move the needle.
• ECB's Lane and de Cos speak after the European close Tuesday; no scheduled speakers Wednesday and no key data scheduled. In supply, Italy sells CTZ and linkers.

Closing Levels / 10-Yr Periphery EGB Spreads:

• Germany: The 2-Yr yield is up 1bps at -0.743%, 5-Yr is up 1.7bps at -0.745%, 10-Yr is up 1.8bps at -0.563%, and 30-Yr is up 1.6bps at -0.149%.
• UK: The 2-Yr yield is up 1.1bps at -0.018%, 5-Yr is up 1.5bps at 0.024%, 10-Yr is up 1.2bps at 0.33%, and 30-Yr is down 0.1bps at 0.901%.
• Italian BTP spread down 3bps at 117.5bps
• Spanish bond spread down 1.5bps at 63.7bps
• Portuguese PGB spread down 1bps at 59.6bps
• Greek bond spread down 1.8bps at 123.3bps