Bonds: Gilts at both the short and long ends of the curve underperform
These were the movements in some of the most widely-followed 10-year sovereign bond yields:
US: 2.97% (+1bp)
UK: 1.54% (+6bp)
Germany: 0.64% (+5bp)
France: 0.85% (+4bp)
Spain: 1.31% (+3bp)
Italy: 1.79% (+2bp)
Portugal: 1.7% (+4bp)
Greece: 4.04% (-1bp)
Japan: 0.07% (+1bp)
Gilts underperformed at the start of the week, as traders on this side of the Pond played catch-up - on both the short and long ends of the interest rate curve - with the losses seen in US Treasuries last Friday.
Stoking the selling, overnight the yield on the benchmark 10-year US Treasury note had moved to within a whisker of their end-2013 highs of 3.0%.
That came as upwardly-revised forecasts for US economic growth in 2018 and higher oil quotes on international markets saw the odds of three more interest rate hikes in the States over the remainder of the year rise to 48.1%.
On that note, analysts at TD Securities said: "10s neared 3% amid rising global yields and supply fears. We hold on to 5s30s steepeners as term premium should continue to normalize in a post-QE world.
"While hedging can exacerbate the move in the near-term, the rise in real rates should be a headwind for risk assets. That should limit the rise in rates."
Not to be missed, during the week just started markets would be asked to absorb $86bn-worth of two, five and seven year issuance from the US Treasury, beginning from Tuesday.
Those auctions would come alongside the sale of $26bn of 52-week Treasury bills on Tuesday and a further $45bn of four-week bills the next day.
Two-year Gilts were also lower on Monday, with their yield climbing by four basis points to 0.87%, despite recent talk in markets that a hike in Bank Rate may not be a 'done deal'.
The yield on two-year US Treasuries on the other hand was higher by only one basis point to 2.47% in early evening trading.
Yields on two-year German bunds on the other hand were better behaved and were gaining just one basis point to 0.55% ahead of Thursday's European Central Bank policy meeting.
Supply in the euro area on the other hand was set to be "highly negative", Chiara Cremonesi at UniCredit Bank pointed out, what with between €17-21bn of auctions scheduled, alongside €27bn of redemptions and €14bn of French coupons on Wednesday.