EGBs-GILTS CASH CLOSE: Greece Underperforms Again

Gilts and Bunds weakened Tuesday, with the German curve bear steepening and the belly underperforming in the UK.

• No major data or ECB speakers Tuesday, with the most notable morning event being BoE's Ramsden telling Reuters that the BoE would sell Gilts even if it were to cut rates in future.
• Gilts briefly gained in late afternoon on a Bloomberg sources piece pointing to UK gov't plans for potential power cuts in January in a "reasonable worst-case scenario", but the move quickly faded and Gilts reversed to session lows.
• GGBs underperformed yet again, with a wiretap scandal continuing to pose political uncertainty.
• Otherwise very thin trading volumes, with all attention on Wednesday's US inflation report.

Closing Yields / 10-Yr Periphery EGB Spreads To Germany:

• Germany: The 5-Yr yield is up 1.9bps at 0.688%, 10-Yr is up 2.2bps at 0.921%, and 30-Yr is up 3.6bps at 1.154%.
• UK: The 2-Yr yield is up 2.9bps at 1.927%, 5-Yr is up 3.9bps at 1.82%, 10-Yr is up 1.9bps at 1.971%, and 30-Yr is down 0.7bps at 2.345%.
• Italian BTP spread down 0.5bps at 214bps / Greek up 10.1bps at 228.3bps