EGBs-GILTS CASH CLOSE: Sizeable Swings, But Flat On The Day

While Bunds and Gilts are basically flat on the day, we saw decent intraday moves. Yields moved higher in the morning, fell by mid-afternoon, then rose again toward the end of the session.

• In turn, modest curve flattening reversed in the UK and German curves. The late session moves higher in German yields was mirrored by narrowing periphery spreads vs intraday wides.
• Not much driving the agenda today (stronger equities provided a risk-on tone), and that's likely to be the case Tuesday with limited data (French consumer confidence) and no central bank speakers. Of interest at the short-end, Germany sells EUR6bln of Schatz. UK sells GBP4.25Bln of Gilts.

Closing levels:

• Germany: The 2-Yr yield is up 0.6bps at -0.677%, 5-Yr is up 1.5bps at -0.684%, 10-Yr is up 1.6bps at -0.491%, and 30-Yr is up 2bps at -0.055%.
• UK: The 2-Yr yield is up 0.6bps at -0.041%, 5-Yr is up 0.6bps at -0.04%, 10-Yr is up 0.7bps at 0.213%, and 30-Yr is up 0.7bps at 0.789%.

10-Yr Periphery EGB Spreads:

• Italian BTP spread down 1.6bps at 143.5bps
• Spanish bond spread up 1.3bps at 81.8bps
• Portuguese PGB spread up 0.8bps at 84.4bps
• Greek bond spread down 2.4bps at 157.7bps