Softer Following Hawkish BoJ Leanings; Peripheries Widen

Core/semi-core EGBs have recovered from intraday lows, but remain weaker on the day.

• The initial moves lower came as BoJ Governor Ueda's press conference leant on the hawkish side, after the decision itself featured few surprises.
• Bunds are -17 ticks at 134.30, 21 ticks above the day's lowest levels but still some 36 ticks off yesterday's high. OAT futures sit similarly, +21 ticks at typing.
• The German and French cash curves have bear steepened, with yields flat to +3bps at typing. Peripheries are a touch wider to Bunds with the 10-year BTP/Bund spread +1.4bps at 156.3bps.
• The ECB's Q4 '23 Bank Lending Survey reported another net tightening in credit standards, with more expected in Q1 '24, while loan demand continued to drop "substantially".
• Elsewhere, the week's supply has kicked off with the Netherlands and Germany, alongside a dual-tranche tap syndication from the EU.
• The remainder of today's regional docket is light, with Consumer Confidence highlighting at 1500GMT/1600CET. Focus remains on tomorrow's flash PMIs before the ECB decision on Thursday.