EGBs-GILTS CASH CLOSE: Slightly Weaker With Supply Eyed

Bunds and Gilts weakened modestly Monday in a risk-on session for equities in which periphery EGBs outperformed.

• BoE Chief Economist Pill's speech - the most anticipated event of the session - was initially taken hawkishly by markets with short-end yields ticking up a couple of basis points, but while February BoE hike pricing remained firm, it softened further down the strip.
• The German curve bear flattened, with the UK's steepening and the 5Y segment outperforming with today's short-dated APF sale seeing high bid-cover.
• BTPs outperformed, with 10Y spreads closing below 200bp for the first time this year.
• Tuesday's docket is highlighted by central bank speakers (including Bailey, Schnabel, and Powell) and huge supply with auctions from Austria, Germany, Netherlands, UK, and syndications from Belgium, Italy, Latvia.

Closing Yields / 10-Yr Periphery EGB Spreads To Germany

• Germany: The 2-Yr yield is up 3.2bps at 2.613%, 5-Yr is up 1.5bps at 2.266%, 10-Yr is up 1.8bps at 2.228%, and 30-Yr is up 2.4bps at 2.179%.
• UK: The 2-Yr yield is up 0.8bps at 3.446%, 5-Yr is down 0.4bps at 3.446%, 10-Yr is up 5.5bps at 3.527%, and 30-Yr is up 7.4bps at 3.945%.
• Italian BTP spread down 5.8bps at 195.7bps / Spanish down 1.3bps at 104.5bps