EGBs-GILTS CASH CLOSE: Geopolitical Reversals

Bunds outperformed Gilts Monday in a session dominated by geopolitical headlines.

• The open was met with risk-selling and core FI buying on Russia-Ukraine conflict fears, but this reversed almost completely in the afternoon as Russia indicated it saw a "way forward" on talks. Later, Interfax reported that Ukraine saw no full-scale Russian attack in the coming days, and yields finished near their highs.
• The standout move was at the UK short end, with 2Y yields at the highest since Feb 2011 - close attention on UK jobs data tomorrow, inflation Weds.
• Periphery spreads widened sharply on the open, and didn't come fully back despite the recovery in broader risk sentiment.

Closing Yields / 10-Yr Periphery EGB Spreads To Germany

• Germany: The 2-Yr yield is down 3.7bps at -0.361%, 5-Yr is down 4bps at 0.044%, 10-Yr is down 1.4bps at 0.283%, and 30-Yr is down 0.2bps at 0.494%.
• UK: The 2-Yr yield is up 9.6bps at 1.51%, 5-Yr is up 6.7bps at 1.504%, 10-Yr is up 4.4bps at 1.589%, and 30-Yr is up 2.9bps at 1.646%.
• Italian BTP spread up 3.4bps at 169bps / Greek up 3bps at 237.5bps