EUROPEAN FIXED INCOME UPDATE; bond rout continues amid the odd bounce

Analysis details (11:05)

Bears are still dominating debt markets and it’s long been a case of just how low can futures go and yields climb before anything meaningful in terms of a correction or some real retracement on the grounds of oversold conditions. However, there is little sign of anything more than brief periods of consolidation or intent to buy for longer than the very short term, let alone intraday purposes, as Bunds, Gilts and the 10 year T-note sit precariously above latest troughs of 154.27, 118.42 and 119-10+ respectively.  However, cash levels appear to have been attractive for bidders at auction in Germany and the UK at least given decent demand for Eur 5.5 bn Schatz and Gbp 2.5 bn 2032 DMO issuance, with a smaller retention and shorter tail respectively. Ahead, key US inflation data and the Usd 34 bn 10 year sale. 

12 Apr 2022 - 11:05- Fixed IncomeResearch Sheet- Source: Newsquawk