EUROPEAN FIXED INCOME UPDATE: bonds back in bull-flattening mode
Analysis details (10:25)
A relatively warm welcome for 2034 DMO issuance given the fact that concession was unwinding into the auction, with Gilts towards the top of a 95.21-94.47 range. Meanwhile, Bunds continue to bounce firmly and just probed 130.00 at 130.03 compared to 129.35 at the Eurex low and the T-note has also revisited a round number at 108-00 having been down to 107-19+ at one stage overnight. The question is, what was the catalyst for the latest revival in debt futures and return to long end outperformance and the answer could range from pure consolidation after a hefty retreat, some reaction to the latest Fed SLOOS showing tighter financial conditions and less demand for credit plus BoE’s Pill putting some time frame to a potential change in the policy cycle from restrictive levels and another swoon in crude.
07 Nov 2023 - 10:24- Research Sheet- Source: Newsquawk
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