A risk-on theme coursed through European stock markets into the early PM session, and while EGB yields were mixed, peripheral yield spreads relative to the Bund narrowed. Portuguese bond yields dropped notably after Fitch Ratings announced a two-notch upgrade to the former bailout country’s sovereign debt. Fitch has joined S&P in upgrading Portuguese sovereign debt to investment grade, which will now qualify Portuguese paper to be included in leading bond indexes. In stock markets, the pan-Europe Stoxx 600 was up 1.0%. Investors are still reacting to last week’s less hawkish than expected guidance from the Fed, ECB and BoE, while there are widespread expectations for Republicans to push through its corporate-friendly tax overhaul as soon as Wednesday. Also in the mix has been stronger-than-expected export data out of Japan, which rose 16.2% year over year, coupled with a key quarterly business survey in Japan finding that there remains a strong consensus for benign inflationary conditions to remain. Final Eurozone November HICP inflation was confirmed at 1.5% year over year.