EGBs-GILTS CASH CLOSE: Shrugging Off Dollar Surge/Equity Drop

The European bond space largely ignored a strong move higher in the US dollar and equities falling to session lows in the afternoon.

• Gilt yields maintained their sharp rise at the open amid a panoply of headlines/data (incl very strong PMIs in both the UK and US, and optimism on AZN vaccine and Brexit talks), largely shrugging off BoE TSC. Bund yields moved in similar fashion, while Italian spreads widened late in the day from the lows.
• Confidence indicators highlight Tuesday's data docket (incl German IFO), while in supply we get Dutch and UK supply. ECB's Lagarde and BoE's Haskel speak.

Closing Levels / 10-Yr Periphery EGB Spreads:

• Germany: The 2-Yr yield is down 0.2bps at -0.753%, 5-Yr is down 0.1bps at -0.762%, 10-Yr is up 0.2bps at -0.581%, and 30-Yr is up 1.1bps at -0.165%.
• UK: The 2-Yr yield is up 1.3bps at -0.029%, 5-Yr is up 1.6bps at 0.009%, 10-Yr is up 1.6bps at 0.318%, and 30-Yr is up 1.3bps at 0.902%.
• Italian BTP spread down 1.1bps at 120.5bps
• Spanish bond spread up 0.4bps at 65.2bps
• Portuguese PGB spread unchanged at 60.6bps
• Greek bond spread down 2.7bps at 125.1bps