EGBs-GILTS CASH CLOSE: Long-End Yields Lurch Lower

Long-end UK and German yields dropped sharply Tuesday, led this time by a near-11bp drop in 30Y Germany. Periphery EGB spreads widened slightly, with Greece underperforming.

• The session saw decent gains in the morning, with few apparent catalysts (the Europe move appeared largely US Tsy led), and volumes fairly limited.
• Gains in core FI extended in mid-afternoon as equities fell sharply on the US stock market open, led by a drop in Tesla's share price.
• Once again, a limited data slate (German ZEW was mixed, but had little impact).
• The UK, Germany, and Portugal hold auctions Wednesday.

Closing Yields / 10-Yr Periphery EGB Spreads To Germany

• Germany: The 2-Yr yield is down 2bps at -0.742%, 5-Yr is down 3bps at -0.586%, 10-Yr is down 5.5bps at -0.298%, and 30-Yr is down 10.8bps at 0.007%.
• UK: The 2-Yr yield is up 3.5bps at 0.452%, 5-Yr is up 2.8bps at 0.597%, 10-Yr is down 3.2bps at 0.824%, and 30-Yr is down 7.7bps at 0.927%.
• Italian BTP spread up 0.2bps at 113.9bps / Greek up 3.5bps at 138bps