EGBs-GILTS CASH CLOSE: Prepping For Big Issuance Tuesday

A fairly quiet session to start the week, with early yield dips (on overnight weakness in equities) reversing over the course of the session.

• More than anything, supply eyed later in the week, with large syndication announcements pushing EGB yields higher. Data showed ECB net asset purchases rebounded sharply last week; in Germany, there was some attention on interrnal party wrangling over who will be the Union parties' candidate for Chancellor in the September elections.
• While today saw "just" E4bn of EFSF syndication, tomorrow sees: syndications from Austria (dual-tranche) and Spain which were announced today, and auctions from the Netherlands, Italy, Germany, and the UK.
• Apart from that, UK Feb GDP and German ZEW figures highlight Tuesday's docket.

Closing yields/10-Yr Spreads to Bunds:

• Germany: The 2-Yr yield is up 0.1bps at -0.701%, 5-Yr is up 0.2bps at -0.631%, 10-Yr is up 1bps at -0.293%, and 30-Yr is up 2bps at 0.262%.
• UK: The 2-Yr yield is up 0.8bps at 0.054%, 5-Yr is up 0.8bps at 0.361%, 10-Yr is up 1.5bps at 0.789%, and 30-Yr is up 0.5bps at 1.31%.
• Italian BTP spread down 0.2bps at 102.8bps / Spanish up 0.2bps at 68.2bps