EUROPEAN FIXED INCOME UPDATE: bond bears continue to pounce

Analysis details (10:42)

Another tame and short-lived revival in debt futures before retracement to deeper lows has left Bunds, Gilts and the T-note closer to troughs seen prior to what looked like a more meaningful recovery at various stages last week. However, hawkish ECB noises are clearly sounding louder than more dovish vibes elsewhere, including the UK where a prominent bank suggests that there may be more votes on the BoE’s MPC for 25 bp than the 50 bp hike widely anticipated and priced in. Indeed, the core Eurozone bond has now been down to 137.82 (45 ticks below par vs +17 ticks at best), its UK peer 103.79 (-67 ticks on the day vs +27) and 10 year US counterpart at 114-30 vs 115-07 on the flip-side. Ahead, fairly light pm agenda, but more ECB officials are scheduled to speak. 

23 Jan 2023 - 10:42- Research Sheet- Source: Newsquawk