Bonds: Yields extend shift lower ahead of Fed decision, investors cautious
These were the movements in some of the most widely-followed 10-year sovereign bond yields:
US: 2.86% (-3bp)
UK: 1.27% (+3bp)
Germany: 0.26% (+0bp)
France: 0.74% (+3bp)
Spain: 1.40% (-1bp)
Italy: 2.96% (+2bp)
Portugal: 1.65% (-1bp)
Greece: 4.35% (+10bp)
Japan: 0.04% (+1bp)
Gilts came under some selling pressure at the start of the week, even as Prime Minister Theresa May told the House of Commons that a second vote on Brexit would be a betrayal of Britons' will.
May also said that her Brexit plan would be put to a vote during the week starting on 14 January.
Longer-dated Gilts were also tracking a slight a bid in the pound.
On the other side of the Atlantic however, investor sentiment apparently remained quite shaky, with Wall Street again tumbling lower, ahead of the US central bank's rate decision, on Thursday.
The latest leg down in stocks saw the implied odds of a Fed hike on 19 drop as low nearly 70% at one point during the session, according to the CME's Fed Watch tool.
Linked to the above, in remarks to CNBC, hedge fund Double Line Capital's chief investment officer, Jeffrey Gundlach, went out on a limb, saying he thought the Fed should not go ahead with a hike.
The day before, writing in an opinion piece in the Journal, another well-known market pundit, Stan Druckenmiller, argued much the same.
Yields on the shorter end of the US yield curve also slid lower, retreating by four basis points to 2.69%.