EGBs-GILTS CASH CLOSE: Yields Come Off Lows

Over the course of Wednesday's session, Bund and Gilt yields climbed from early lows and curves steepened from flattest levels as equities gained ground. Periphery spreads widened from tightest levels (10-yr BTP 3bps wider from 118bps low vs Bunds).

• The session low yields for 10-yr Bunds and Gilts were the lowest since Nov 9 (the day Pfizer announced its COVID vaccine progress).
• Little in the way of driving newsflow. Morning Bund and Gilt supply came and went without much fanfare, and UK upside inflation miss was shrugged off.
• On Thursday we get Spanish and French bond supply (E12.5bn) and ECB's Lagarde's hearing before the European Parliament.

Closing Levels / 10-Yr Periphery EGB Spreads:

• Germany: The 2-Yr yield is down 0.6bps at -0.727%, 5-Yr is up 0.6bps at -0.738%, 10-Yr is up 0.9bps at -0.554%, and 30-Yr is up 0.8bps at -0.149%.
• UK: The 2-Yr yield is up 0.8bps at -0.026%, 5-Yr is up 1bps at 0.016%, 10-Yr is up 1.3bps at 0.337%, and 30-Yr is up 1.9bps at 0.931%.
• Italian BTP spread up 0.7bps at 120.9bps
• Spanish bond spread down 0.3bps at 63.5bps
• Portuguese PGB spread down 0.2bps at 60.4bps
• Greek bond spread down 1.5bps at 121.8bps