German 10-Year Treasury Notes rose for the first time since December 6, as MMF traders raised their bets on the European Central Bank cutting interest rates in the second half of next year.

The German 10-Year Treasury Notes Yield fell by 1 basis point to 2.25%, having risen by 15 basis points over the past week.

The yield curve steepened in a bull market, with the 2-Year Treasury Yield dropping by 2 basis points to 2.05%.

The spread between French and German Treasury yields closed wider by 1 basis point to 80 basis points, following Moody's downgrade of France's credit rating.

UK Treasuries underperformed, with short-term bonds leading the decline; the UK 2-Year Treasury Notes Yield rose by 5 basis points to 4.36%.

S&P Global reported that the UK Composite PMI for December remained steady at 50.5, close to economists' expectations of 50.6.

The MMF market has cut back on bets for the Bank of England to lower interest rates by 2025; a reduction of 71 basis points is expected by December 2025, down 4 basis points from Friday.

Market

German Treasury Notes Yield fell by 1 basis point to 2.25%;

German Futures rose by 7.00 points to 134.71%;

Italy 10-Year Treasury Notes Yield remained steady at 3.40%;

The spread between Italy and German Treasury Notes Yield widened by 1 basis point to 115 basis points;

France 10-Year Treasury Notes Yield remained largely unchanged, reported at 3.04%;

UK 10-Year Treasury Notes Yield rose by 3 basis points to 4.44%.