EUROPEAN FIXED INCOME UPDATE: bonds braced for the first of big three

Analysis details (10:47)

Debt futures succumbed to a bit more downside pressure, but remain divergent and have tended to revert towards parity in ultimately directionless fashion awaiting the Fed initially and then the ECB and BoJ in close proximity over the remainder of the week. Bunds have been down to 133.26 compared to yesterday’s 133.49 Eurex close and could derive some traction or comfort from the fact that Germany’s new 7 year bond floated at launch even though the average yield was 5 bp over coupon and the retention was relatively large. Meanwhile, Gilts have bounced off a deeper 96.29 Liffe base vs Tuesday’s 96.49 settlement price and the T-note is still outperforming towards the top of a 111-29-21+ range with a day’s grace from supply given the looming FOMC and looking for some interim impetus from US new home sales.  

26 Jul 2023 - 10:47- Fixed IncomeResearch Sheet- Source: Newsquawk