EUROPEAN FIXED INCOME UPDATE: bond bounce wanes before 20 year US supply

Analysis details (10:27)

Debt futures have drifted back down from best levels, but not before extending the bounds of recovery a bit further in increasingly light turnover and low-key trade. Gilts carried the baton on return to Liffe and reached 101.53 before retreating to a minor new intraday low at 101.08 (5 ticks below par vs 40 ticks above), while Bunds subsequently probed 136.00 with a little more enthusiasm to touch 136.17 and top out (for a 26 tick gain on the day compared to 31 tick loss) and the T-note is hovering towards the apex of its 113-21/09+ range. However, 20 year Treasury issuance looms after several data releases including Canadian inflation metrics, US weekly mortgage applications, existing home sales and consumer confidence,  and may derail bonds if not received well.

21 Dec 2022 - 10:27- Fixed IncomeResearch Sheet- Source: Newsquawk