EUROPEAN FIXED INCOME UPDATE: bonds back in sell uptick mode

Analysis details (10:38)

Debt futures are holding off worst levels, but the pendulum has clearly swung following peaks forged on Thursday in further reaction to the largely bleak midweek PMIs. Indeed, Bunds and their Eurozone peers only mustered modest upside momentum from ECB sources inferring heightened prospects of a pause in September and no additional impetus from weaker than consensus German Ifo survey readings before retreating towards intraday lows, while BTPs remain depressed after a somewhat mixed 2025 Italian auction. Looking at prices in more detail, the 10 year benchmarks are around 132.28 and 115.06 within 132.57-20 and 115.28-114.98 respective ranges. Similar story on Liffe where Gilts are sub-par between 94.48-24 parameters, and for the T-note, at 109-15+ vs 109-20 peak and 109-12+ trough. Ahead, arguably the main events of the week from JH, as Fed Chair Powell and ECB President Lagarde speak, but with plenty of other Central Bank officials featured in between plus the final UoM release as an appetiser.

25 Aug 2023 - 10:38- Research Sheet- Source: Newsquawk