EUROPEAN FIXED INCOME UPDATE: bonds braced for main event

Analysis details (11:07)

Debt futures have witnessed more choppy price action that might be considered befitting for a preamble to an FOMC, but there have been other factors along the way. Risk sentiment is less averse than it has been of late, bullish technical impulses are fading alongside upside momentum and the lack of concession seems to have depressed demand for German and even UK linker issuance that should have been sought after given high/rising price pressures. Looking at moves in more detail, Bunds carved out a minor new high at 156.07 vs deeper 155.36 low in keeping with Gilts that reached 117.67 before reversing to 117.12, but the 10 year T-note is ticking up towards best levels between 119-31/119-19+ bounds pre-Fed and a decent data schedule to provide interest before that (durable goods, trade and pending home sales).  

27 Jul 2022 - 11:07- Research Sheet- Source: Newsquawk