EUROPEAN FIXED INCOME UPDATE: bond bears back in the driving seat
Analysis details (10:49)
The writing was probably on the wall for Bunds when a post-German data ‘rally’ topped out at 136.21, which was a 50% retracement of the decline from 136.74 to 135.68 on Friday and for BTPs when an initial mark-up only prompted three ticks worth of follow-through buying. However, interim supports have subsequently given way, irrespective of a downbeat Eurozone Sentix index, and perhaps with supply weighing on Italian debt as the Tesoro has announced a new 4 year retail offering for early June. Bunds and BTPs are off worst levels having fallen to 135.46 and 114.48 respectively, latter vs a very early and fleeting 115.19 peak, while US Treasuries appear to have retreated in sympathy with the 10 year T-note closer to 115-16+ overnight base than 115-27+ apex ahead of employment trends and Fed surveys of lending and consumer expectations.
08 May 2023 - 10:49- Research Sheet- Source: Newsquawk
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