Bonds: Gilts underperform, euro area periphery debt in focus
These were the movements in some of the most widely-followed 10-year sovereign bond yields:
US: Presidents Day
UK: 1.23% (+2bp)
Germany: 0.30% (-1bp)
France: 1.06% (+2bp)
Spain: 1.61% (-3bp)
Italy: 2.18% (-1bp)
Portugal: 3.99% (-4bp)
Japan: 0.10% (+1bp)
Greece: 7.54% (-30bp)
Ten-year Gilts underperformed amid another strong reading on the UK factory sector - and signs of cost pressures - and somewhat hawkish remarks from a top US central bank official over the weekend.
The Confederation of British Industry´s total orders index printed at +8 for the three months to February (consensus: +5), its best reading since February 2015, when it was at +10.
However, output prices were also seen rising at a faster clip, with the corresponding sub-index at +32 - the loftiest level since April 2011.
Acting as a backdrop, in remarks made overnight from Singapore, Minneapolis Federal Reserve bank president Loretta Mester reportedly said the US monetary authority had not "fallen behind the curve", although to delay tightening policy risked the Fed "falling behind the curve".
"[Markets and the Fed were now] thinking about the economy in the same way," Mester said.
She also described the economy as on a "sound footing" and said the Federal Reserve had taken "extraordinary actions" beyond what is typically considered to be the normal conduct of monetary policy.
On a similar vein, the US rate-setter also reportedly alluded to the temporary negative impact on inflation of the recent oil price 'shock' and US dollar strength.
French bonds were in focus amid US holiday-thinned trading conditions after poll results released on Monday showed Marine Le Pen was continuing to whittel away at rival Emmanual Macron´s lead.
Greek bonds rallied on hopeful remarks from German finance minister Wolfgang Schaeuble pointing to an imminent return of inspectors from the country´s Troika of lenders.
Euro area finance ministers were scheduled to meet later on Monday evening.