EGBs-GILTS CASH CLOSE: Long-End Rout

The German curve twist steepened while the UK's bear steepened Monday, with standout sell-offs at the long end.

• Higher energy prices (including a jump in European gas futures) and the continuation of the "higher for longer" theme for global rates continued to weigh, with steepening evident across European curves.
• The 30Y segment underperformed with yields up double-digits across the space: Buxl had one of its biggest selloffs this year and yields touched 3% for the first time since 2011. Gilt 30Y yields remain below the 2022 mini-budget highs though.
• BTPs underperformed EGB periphery peers, with the 30Y yield at a decade-high.
• Data had little apparent lasting impact. September German IFO was slightly better than feared but still pointed to a recessionary end to Q3.
• ECB Pres Lagarde repeated many of the talking points of last week's decision, while Schnabel explored the debate about what signal the growth and subsequent collapse in money supply aggregates were sending to central bankers.
• Tuesday's data docket is thin, but we get plenty of ECB speakers including Lane, Simkus, Muller, and Holzmann, with Eurozone CPI data eyed later in the week (MNI's preview will be out Tuesday).

Closing Yields / 10-Yr Periphery EGB Spreads To Germany

• Germany: The 2-Yr yield is down 2.1bps at 3.237%, 5-Yr is up 1.5bps at 2.765%, 10-Yr is up 5.9bps at 2.798%, and 30-Yr is up 10.5bps at 2.998%.
• UK: The 2-Yr yield is up 1.3bps at 4.816%, 5-Yr is up 3.7bps at 4.401%, 10-Yr is up 7.4bps at 4.323%, and 30-Yr is up 11.3bps at 4.796%.
• Italian BTP spread up 0.9bps at 186.4bps / Spanish bond spread down 0.8bps at 107.2bps