EUROPEAN FIXED INCOME UPDATE: bond bears baited by yet another inflation beat

Analysis details (10:28)

Debt futures were licking wounds after their latest mauling, but came under renewed attack on the back of Eurozone inflation metrics confirming the upside bias against consensus flagged by prelim reports from France, Spain and Germany in the run up. However, Bunds held above their 131.31 intraday low even though the super core HICP rate actually accelerated to register a fresh all time peak and add to concerns at the ECB that the headline may be cooling, but other gauges remain sticky or even trending higher. Elsewhere, Gilts rebounded further from worst levels, but ran out of momentum ahead of 100.00, at 99.91 and the T-note remains pinned down towards the base of its 110-20/111-02 overnight range pre-US jobless, Fed’s Waller and Kashkari. First things first, ECB minutes alongside Schnabel, BoE’s Tenreyro and then Pill post-US data.  

02 Mar 2023 - 10:28- Research Sheet- Source: Newsquawk