EGBs-GILTS CASH CLOSE: Modest Gilt Outperformance Ahead Of Key UK Data

European yields closed little changed Monday, with Gilts modestly outperforming ahead of a heavy UK data schedule this week.

• Bunds and Gilts weakened in European morning trade, paring some of Friday's gains amid a quiet data/speaker slate.
• They ultimately recovered those losses in the afternoon in volatile trade (albeit within last week's ranges) that mirrored the wider risk picture, as equities vacillated despite no major headline triggers.
• The German curve modestly bear flattened, with the UK's bull flattening. Periphery EGB spreads closed mixed, but basically unchanged vs Bunds.
• Most market focus in Europe is on UK labour market data Tuesday and inflation Wednesday (MNI's preview went out today), though US PPI/CPI on those respective days will of course be of global importance.
• In the Eurozone, Tuesday sees final Spain CPI, with the second reading of Q2 Eurozone GDP on Wednesday.

Closing Yields / 10-Yr Periphery EGB Spreads To Germany

• Germany: The 2-Yr yield is up 0.7bps at 2.393%, 5-Yr is up 0.4bps at 2.136%, 10-Yr is up 0.1bps at 2.226%, and 30-Yr is up 0.1bps at 2.459%.
• UK: The 2-Yr yield is down 1.6bps at 3.636%, 5-Yr is down 1.4bps at 3.711%, 10-Yr is down 2.9bps at 3.916%, and 30-Yr is down 2.3bps at 4.493%.
• Italian BTP spread down 0.3bps at 141.5bps / Spanish bond spread down 0.3bps at 85.7bps