April 04, 2022 16:03 GMT
Bund and Gilt yields range traded for most of Monday's session, finishing lower, with UK instruments outperforming.
- Core FI strengthened in the morning on headlines that the EU would add further sanctions on Russia "urgently", before drifting for most of the session. Though notably the bond rally lagged an initial drop in equities.
- Yields picked up later in the session, both as equities gained steam, and ECB's Vasle said policy rates could be out of negative territory by end-year.
- Periphery EGB spreads widened by 2-3bp, mostly on the initial safe haven bid.
Closing Yields / 10-Yr Periphery EGB Spreads To Germany:
- Germany: The 2-Yr yield is down 1.4bps at -0.082%, 5-Yr is down 3.3bps at 0.345%, 10-Yr is down 4.8bps at 0.507%, and 30-Yr is down 3.6bps at 0.636%.
- UK: The 2-Yr yield is down 0.8bps at 1.366%, 5-Yr is down 3bps at 1.387%, 10-Yr is down 6.1bps at 1.547%, and 30-Yr is down 6.9bps at 1.668%.
- Italian BTP spread up 2bps at 155.8bps / Spanish up 2.6bps at 94.3bps
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