EGBs-GILTS CASH CLOSE: Steady Sell-Off To Start The Week

Bund and Gilt yields rose steadily throughout Mondays session to finish sharply higher, reversing Friday's drop.

• In trading reminiscent of late last week, there was little evident catalyst that could be identified for the upward yield move, which was in orderly fashion intraday but decidedly bearish.
• With little new on the central bank speaker front (Lagarde reiterated January's guidance; dove Stournaras again eyed June for first cut), and no important data, focus appeared to be on issuance dynamics including French and Slovak syndication announcements, and a front-loaded US Treasury auction calendar.
• End-2024 implied ECB and BoE rates rose by 7bp on the day (now implying 93bp of cuts) and 6bp (64bp of cuts), respectively.
• Bunds underperformed their UK counterparts, though 10Y Gilt yields closed at their highest since early December. Periphery spreads closed marginally wider to Bunds.
• Tuesday sees an appearance by BoE's Ramsden, with ECB money supply data out as well. The focus of the week will be February flash inflation on Thursday-Friday - MNI's preview was published today (PDF here).

Closing Yields / 10-Yr Periphery EGB Spreads To Germany

• Germany: The 2-Yr yield is up 7.1bps at 2.924%, 5-Yr is up 8.1bps at 2.454%, 10-Yr is up 7.8bps at 2.441%, and 30-Yr is up 8.2bps at 2.575%.
• UK: The 2-Yr yield is up 5.6bps at 4.312%, 5-Yr is up 6.4bps at 4.044%, 10-Yr is up 5.7bps at 4.162%, and 30-Yr is up 3.8bps at 4.637%.
• Italian BTP spread up 1.5bps at 145.2bps / Spanish bond spread up 0.4bps at 89.3bps