EUROPEAN FIXED INCOME UPDATE: BoE Governor throws UK debt a lif(f)eline

Analysis details (10:55)

Fortune definitely favoured the brave that bought 2038 DMO supply prior to the appearance by BoE Governor Bailey at a cost of living conference, as he said enough to raise doubts over further rate hikes during his speech to the benefit of Gilts and flagging UK STIR contracts. Indeed, the 10 year benchmark is firmly back above par and the psychological 100.00 mark having been as low as 99.37 and high as 100.33, while the Sonia strip has reversed losses within +10.5/-11.5 tick extremes. Elsewhere, Bunds are off worst levels after finally finding some support around a Fib projection between 132.99-131.86 extremes following a mixed two-tranche German auction, but also in the slipstream of Gilts, while the T-note remains soft inside a 111-18/08+ band in the run up to final US manufacturing PMIs, a speech from Fed’s Kashkari and the ISM.

01 Mar 2023 - 10:55- Research Sheet- Source: Newsquawk