Bonds: Gains for Gilts despite hawkish central bank talk
These were the movements in some of the most widely-followed 10-year sovereign bond yields:
US: 2.38% (-3bp)
UK: 1.29% (-3bp)
Germany: 0.35% (-2bp)
France: 1.11% (-3bp)
Spain: 1.77% (-2bp)
Italy: 2.37% (-1bp)
Greece: 7.83% (+17bp)
Portugal: 4.24% (-0bp)
Japan: 0.1% (+0bp)
Gilts outperformed again, alongside US Treasuries, even as worries over the political situation in the euro area subsided a little.
In a day bereft of market-moving economic data, focus shifted back to Greece, following news of a split on the IMF board about what measures to ask of Athens and amid speculation that policymakers in the Mediterranean country were digging in their heels against demands they complete reforms which had already been agreed.
Significantly, Tuesday's gains for bonds in the US and UK came despite somewhat hawkish remarks out of some rate-setters on both sides of the Pond.
Speaking overnight, the president of the Federal Reserve bank of Philadelphia, Patrick Harker, reiterated his support for three interest rate hikes in 2017, possibly beginning as soon as March.
For her part, in remarks prepared for a speech Kristin Forbes, an external member of the MPC, said Bank Rate should be raised if the real economy remains "solid" and the pickup in the nominal economic data continued.
"In my view, if the real economy remains solid and the pickup in the nominal data continues, this could soon suggest an increase in Bank," she added.