EUROPEAN FIXED INCOME UPDATE: bonds fade markedly after losing momentum

Analysis details (10:37)

Not much changed fundamentally, and if anything the batch of preliminary EU PMIs were mostly bleak and supportive on paper, but debt futures hit the brakes following early upside amidst a flurry of stop-driven buying activity. Bunds may have hit the wall and resistance into 136.78 that was a loftier bullish objective on some charts, while Gilts could not quite reach 100.00 when it appeared almost destined and it seems that block trades contributed to the retracement in US Treasuries, per IFR that reports 5.5k and 3k lot clips sold in 5 and 10 year notes. The core Eurozone bond is now near the bottom of a 135.23-136.72 range vs 135.12 prior Eurex close, its UK equivalent just under 99.00 within 99.78-98.15 extremes compared to Friday’s Liffe settlement and T-note a fraction below 110-00 having topped out at 110-15 and bottomed at 109-25 ahead of US PMIs. 

24 Oct 2022 - 10:37- Fixed IncomeResearch Sheet- Source: Newsquawk