EGBs-GILTS CASH CLOSE: Greece Outperforms Post-Election

European core FI had a constructive if quiet start to a busy week Monday, with some modest flattening in both the German and UK curves.

• The German belly outperformed as a weaker-than-expected IFO reading added another piece of evidence pointing toward renewed economic deceleration.
• Bunds held those morning gains, with focus turning to the ECB's Sintra event, and of course national (starting with Italy on Wednesday) and Eurozone flash inflation prints.
• UK yields fell, led by a sharp drop at the 30Y segment as the Gilt market took a bit of a breather from last week's surprise 50bp BoE hike. Appearances by Pill and Bailey on Wednesday are the focus, with GDP on Friday.
• GGBs outperformed in the European space, with the 10Y spread vs Germany touching a post-2021 low following the ND's attainment of a parliamentary majority over the weekend as expected.
• Up next: ECB Pres Lagarde makes remarks after hours, and early Tuesday.

Closing Yields / 10-Yr Periphery EGB Spreads To Germany

• Germany: The 2-Yr yield is down 1.9bps at 3.087%, 5-Yr is down 4.6bps at 2.449%, 10-Yr is down 4.4bps at 2.309%, and 30-Yr is down 3bps at 2.374%.
• UK: The 2-Yr yield is down 1.7bps at 5.16%, 5-Yr is down 1.4bps at 4.557%, 10-Yr is down 1.9bps at 4.301%, and 30-Yr is down 6.5bps at 4.385%.
• Italian BTP spread up 1.5bps at 164.1bps / Greek down 1.4bps at 123.6bps