EUROPEAN FIXED INCOME UPDATE: bonds gather upside momentum

Analysis details (10:46)

Debt futures overcame several wobbles before establishing a more solid base to mount a firmer recovery from sub-par lows, and soft Italian inflation data gave them another push, albeit with BTPs lagging behind counterintuitively. However, this may well be due to supply considerations awaiting results of the Tesoro’s 8 year exchange auction via syndication, while Bunds, Gilts and US Treasuries extend gains on positional grounds approaching the end of the month, quarter and half one of the year. The core Eurozone bond just touched 134.59 and probed 50% Fib resistance at 134.55 in the process, its UK peer popped above 96.00 to 96.07 before waning and the T-note nudged 113-00 at 113-02 (vs 133.92, 95.25 and 112-26+ at the other end of the spectrum) awaiting a rousing final day at the Sintra Forum, US MBA and advance trade, 2 year FRN and 7 year auctions. 

28 Jun 2023 - 10:46- Research Sheet- Source: Newsquawk