Bonds: Gilts slip, Greek debt finds a bid on bailout optimism
These were the movements in some of the most widely-followed 10-year sovereign bond yields:
US: 1.82% (+5bp)
UK: 1.20% (+7bp)
Germany: 0.15% (+2bp)
France: 0.47% (+0bp)
Spain: 1.24% (-2bp)
Italy: 1.71% (-5bp)
Portugal: 3.23% (-6bp)
Greece: 7.42% (-33bp)
Japan: -0.05% (+2bp)
Gilts retreated as the wave of risk aversion that swept over capital markets during the previous week appeared to unwind on the eve of the US presidential elections.
Overnight, the US Federal Bureau of Investigation said it had found no evidence of wrongdoing on the part of Democratic presidential hopeful Hillary Clinton in regards to her use of unauthorised email servers during her tenure as Secretary of State.
Following that news, and heading to into the final stretch before regular voting was due to start the next day, a tracking poll from RealClear Politics showed Clinton running three points ahead of her main rival, Republican Party candidate Donald Trump.
There was little in the way of 'hard data' for investors to chew on in the UK and Stateside.
Nevertheless, it should be noted how the pound weakened further against the dollar after the Secretary of State for exiting the European Union said there was “no going back” on Brexit.
David Davis confirmed the government would appeal the Article 50 High Court ruling that Parliament must vote on the triggering the formal Brexit process.
Also worth noting, compared to the same month a year ago, UK house price growth slowed in October, rising 5.2% in October after increasing 5.8% in September, according to the results of a survey from Halifax. It marked the lowest yearly growth since July 2013 when prices edged up 4.6% but was better then 4.7% rise which economists had penciled in.
In euro area news, Greek bonds found a bid after the European Commission's economic affairs chief, Pierre Moscovici, labelled recent talks between Athens and its creditors as "very encouraging".
Moscovici believed an agreement on the Mediterranean country's second bailout review, including short-term debt relief measures, might be possible.
"The second review is showing signs of being extremely positive and thus I have good hopes that we can arrive at an accord," Moscovici said before Monday's meeting of euro area finance ministers, Market News International reported.
Significantly, acting as a backdrop, as the political uncertainty abated a little the odds of a 25 basis point rate hike by the Federal Reserve at its 14 December policy meeting climbed from 76% at the end of the previous week to 82%, according to Bloomberg data.
The yield on the benchmark two-year US Treasury note was up by three basis points at 0.82% as of 1915 GMT.