EUROPEAN FIXED INCOME UPDATE: bonds bounce firmly from lower lows pre-US CPI
Analysis details (11:00)
Debt futures remain fragile ahead of the latest US inflation report, but opening gaps have been filled after solid if not strong German and UK auction taps and with some further impetus following remarks from ECB President Lagarde (GC has not discussed a further pick-up in the pace of QT in short). In fact, Bunds have been up to 135.53 for a 13 tick gain on the day vs 41 tick loss at one stage, Gilts to 100.41 compared to a 99.97 Liffe low having settled at 100.33 on Tuesday and the T-note 115-08+ from 115-02+ and 115-06 at COB yesterday. However, USTs still have supply to absorb and possibly make room for pending the aforementioned CPI readings relative to consensus and the 10 year yield remains sticky around the psychological 3.5% level.
10 May 2023 - 11:00- Research Sheet- Source: Newsquawk
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