EGBs-GILTS CASH CLOSE: Partial Reversal

European FI partially reversed Friday's huge rally on Monday, though the emphasis is on "partially", with continued concerns over potential European lockdowns putting a lid on yield rises.

• German Nov CPI came in at the highest since 1992 and well above expected, after which Bunds weakened to session-worst levels. But they regained ground later amid a fade in the oil price rally, and reports that the gov't sought an "emergency brake" to deal with Covid.
• Gilt yields underperformed; as expected, UK authorities are set to expand vaccination efforts to head off the Omicron variant threat.
• Spain also saw strong price gains (as expected); Eurozone flash CPI out tomorrow.
• Periphery spreads tightened, with Spain outperforming.

Closing Yields / 10-Yr Periphery EGB Spreads To Germany

• Germany: The 2-Yr yield is up 0.5bps at -0.751%, 5-Yr is up 1.5bps at -0.625%, 10-Yr is up 1.8bps at -0.317%, and 30-Yr is down 0.1bps at 0.019%.
• UK: The 2-Yr yield is up 3.3bps at 0.505%, 5-Yr is up 3.5bps at 0.652%, 10-Yr is up 3.6bps at 0.861%, and 30-Yr is up 1.9bps at 0.946%.
• Italian BTP spread down 1.5bps at 129.4bps / Spanish down 2.5bps at 73.9bps