EGBs-GILTS CASH CLOSE: Short-End Rally Pauses For Breath

UK and German short-end yields ticked higher after a strong rally late last week following the BoE meeting. Long end yields fell, though, with 30Ys outperforming in a flattening curve move.

• Periphery spreads modestly tightened (Italy and Greece 10Y in ~2bp vs Bunds).
• Definitely the least active session in a few days in terms of both volumes and tradeable events, amid a quiet day for data and supply.
• Nothing new from ECB's Lane who reiterated his dovish stance.
• The schedule picks up a bit Tuesday with German ZEW data and German / Dutch bond sales, as well as appearances by BOE's Broadbent and ECB's Lagarde, among others.

Closing Yields / 10-Yr Periphery EGB Spreads To Germany

• Germany: The 2-Yr yield is up 0.7bps at -0.722%, 5-Yr is up 2.2bps at -0.557%, 10-Yr is up 3.5bps at -0.245%, and 30-Yr is up 4.8bps at 0.115%.
• UK: The 2-Yr yield is up 0.9bps at 0.417%, 5-Yr is up 0.3bps at 0.568%, 10-Yr is up 1bps at 0.855%, and 30-Yr is down 1.3bps at 1.003%.
• Italian BTP spread down 1.9bps at 113.8bps / Greek down 2.3bps at 134.6bps