EUROPEAN FIXED INCOME UPDATE: ample concession for demand to exceed supply
Analysis details (10:55)
Debt futures had already clawed back some losses before results of the latest UK and German auctions revealed decent cover ratios, a shorter tail and a lower retention level, albeit at a price for both sovereign issuers. However, the bounce in Gilts and Bunds still leaves both underwater within wider 93.36-70 and 103.48-131.16 respective ranges having extended to the downside in wake of hawkish sounding comments from ECB’s Knot, in the initial rundown of headlines at least. Conversely, US Treasuries are holding a very slender bid having conceded so much ground on return from Labor Day on Tuesday and awaiting more Fed speakers, trade data, the services ISM and latest Beige Book, with the T-note at 110-00 even between 110-05/109-29 confines.
06 Sep 2023 - 10:55- Fixed IncomeResearch Sheet- Source: Newsquawk
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