EUROPEAN FIXED INCOME UPDATE: bonds continue to consolidate outsized gains

Analysis details (10:52)

Ranges have been extended in debt futures, from top to bottom, but pale in comparison to yesterday and the action appears rather overshadowed by latest moves in currency circles where the Buck just cannot stop the rot or catch a break, with the Yen inflicting the most recent bout of pain through 139.00. Nevertheless, Bunds have recovered from a deeper low, at 139.38 and perhaps on technical grounds as 139.35 represents a 50% Fib retracement of Thursday’s rally, while Gilts pared more losses to get within 2 ticks of 105.00 having been down to 104.06 and the T-note is hovering midway between its 112-18/03+ overnight range ahead of prelim UoM sentiment and inflation expectations. Note, no CME floor trade means futures will be ploughing their own, lone furrow, and might be prone to more than the usual pre-weekend volatility as a consequence. 

11 Nov 2022 - 10:52- Fixed IncomeResearch Sheet- Source: Newsquawk