EUROPEAN FIXED INCOME UPDATE: bonds fizzle following French inflation pop

Analysis details (10:55)

Debt futures had already pared back from post-French CPI peaks before Germany’s unexpected unemployment rise and better than forecast Italian/Eurozone GDP data, but another poorly received 2 year German offering pushed the Schatz contract down further from best levels and Bunds in sympathy. However, the latter is holding off lows having been up to 137.30 and Gilts are actually underperforming off a new and sub-par Liffe trough, at 104.32 vs 105.08 at one stage for little obvious reason other than another unconvincing breach of the 105.00 mark (105.05 was the pinnacle on Monday for reference). Elsewhere, US Treasuries are treading a finer line mostly just in positive territory, with the T-note midway between 114-19/09+ ahead of ECI and consumer confidence on day 1 of the FOMC.

31 Jan 2023 - 10:55- Research Sheet- Source: Newsquawk