EUROPEAN FIXED INCOME UPDATE: bond bears pounce on latest bounce
Analysis details (10:50)
No sign of demand destruction at auction for 5 year German debt yielding in excess of 2.5% given a very solid Bobl sale, but it remains to be seen whether 2029 UK issuance receives a warm reception given a hefty mark-up in BoE rate expectations on the back of firmly above forecast PMIs. Moreover, after a short squeeze that seemed safe-haven in nature amidst sabre-rattling from Russian President Putin, bonds have retreated sharply towards prior or to new intraday lows as the overall bearish trend resumes to leave Bunds nearer 134.32 than 134.97, Gilts sub-102.50 within a 102.27-103.23 range and the T-note hovering above 111-17+ having been up to 112-00+ at the other end of the spectrum. Also ahead, UK CBI industrial trends, Canadian inflation and retail sales, plus preliminary US PMIs and existing home sales.
21 Feb 2023 - 10:50- Research Sheet- Source: Newsquawk
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