Bunds dipped following signs of progress in the United States towards averting a fiscal crisis next year, but losses were capped by the limited time left for US lawmakers to reach a final deal.

Expectations for more monetary stimulus in Japan after elections added to background pressure on safe-haven assets.

At 1154 GMT, the March gilt future was 17 ticks lower at 118.25, while the equivalent Bund was 10 ticks lower on the day.

"We're really just moving slightly lower in line with most of the other markets. There isn't a lot to actually digest," said Monument Securities strategist Marc Ostwald.

This week Britain will release a slew of data, including inflation numbers, a revised estimate of third-quarter GDP and minutes from the Bank of England's policy meeting earlier this month.

"The MPC minutes may...start to offer some hints about whether they really think (after) their next big assessment, i.e. the February Inflation Report meeting, they should be doing more QE," Ostwald said.

Ten-year gilt yields rose 2.5 basis points to 1.89 percent, with their spread over equivalent Bund yields a touch wider at 51.5 basis points.