EUROPEAN FIXED INCOME UPDATE: bonds braced for make or break BLS report

Analysis details (10:36)

It’s far too soon to say that debt futures have marked out their boundaries and are now biding time to see what NFP brings, especially in view of the volatility and price swings seen already this week, but Bunds, Gilts and Treasuries appear to have settled down for the big event. The respective 10 year benchmarks all remain underwater amidst more strong inflation data and mostly hawkish Central Bank guidance, between 138.91-10, 95.79-18 and 111-31/111-19+ parameters that pale in comparison to recent extremes and will take cues from the jobs data (payrolls initially, then pay and participation rate along with the other metrics) in context of Fed policy implications, but also a resumption of the bear trend or further retracement.

07 Oct 2022 - 10:36- Fixed IncomeResearch Sheet- Source: Newsquawk