PIPELINE: List of Record Corporate Mega-Deals

ECB President Lagarde's appearance before the European Parliament ECON committee took centre stage Monday, with little data/speaker flow of interest otherwise.

• She didn't say much new ("no need to rush to premature conclusions"), but lack of hawkish surprises helped short-end German yields ease in particular.
• Short-end and periphery EGBs (especially Greece, +20bp vs Bunds on the day) sold off on the open after weekend comments from ECB's Knot over the weekend that we could see 25bp rate hikes in Q4-22 and Q1-23.
• Of note, MNI's interview w Kazaks out this afternoon included discussion on ending ECB's "triple-lock" forward guidance.

Closing Yields / 10-Yr Periphery EGB Spreads To Germany

• Germany: The 2-Yr yield is down 3.9bps at -0.287%, 5-Yr is up 0.5bps at 0.053%, 10-Yr is up 2.2bps at 0.227%, and 30-Yr is up 3.8bps at 0.393%.
• UK: The 2-Yr yield is up 1.3bps at 1.275%, 5-Yr is unchanged at 1.31%, 10-Yr is down 0.3bps at 1.408%, and 30-Yr is up 2.2bps at 1.503%.
• Italian BTP spread up 1.9bps at 156bps / Greek up 22bps at 228.6bps

Less of a hedge for hawkish Fed -- possibly a tactical play in event of a weak Tsy 3Y note auction (91282CDZ1), $50B sale tomorrow:

• +25,000 short Feb 98.00/98.12 put spds, 2.75 ref: 98.185

Italy to sell the following at Feb 10 auction:

• E6.5bln of new 12-month Feb 14, 2023 BOT (IT0005482929)