EUROPEAN FIXED INCOME: bonds mainly weak pre-US labour market report

Analysis details (10:21)

Aside from some minor outperformance at the Eurozone margins and the long end of the Treasury curve, debt futures are observing caution in the run up to NFP that crowns a holiday-shortened week and may provide more justification for the Fed to skip a tightening beat this month, barring a ‘blow-out’ or blockbuster BLS survey. In fact, Bunds are losing further traction from 136.00 following an opening 136.36 Eurex print and edging closer to Thursday’s session low at 135.84 vs 135.60, Gilts are struggling to stay afloat of 97.00 within a 97.43-96.62 Liffe range and the T-note is closer to 114-19+ overnight trough than 114-24+ peak. Buoyant risk appetite, feeding through to crude and other commodities is weighing as China mulls additional measures to prop up its property market.

02 Jun 2023 - 10:20- Research Sheet- Source: Newsquawk