EUROPEAN FIXED INCOME UPDATE: bonds braced for the big US inflation update

It’s almost deja vu for debt futures that made some positive strides and scaled a few humps over the course of the midweek session, but have not been able to emulate or build on the momentum thus far today. Indeed, Bunds, Gilts and the 10 year T-note have all petered out before threatening Wednesday’s best levels and are now consigned to fate ordained by the strength or weakness of US CPI readings, initially and then the long bond auction thereafter. Looking at price moves in more detail, the German bond has bounced off a deeper 165.45 Eurex low, like Gilts that fell to 120.57 and their Treasury equivalent that ducked to 126-18+ vs respective peaks of 165.92, 120.84 and 126-24. All this in stark contrast to JGBs that are firm and outperforming with assistance of pre-announced QE intervention by the BoJ.

10 Feb 2022 - 11:11- Fixed IncomeData- Source: Newsquawk