EUROPEAN FIXED INCOME UPDATE: bonds hit buffers after decent recent bull run

Analysis details (11:00)

It’s hard to pinpoint any clear and obvious impediments, but last night’s FOMC minutes were deemed to be on the hawkish side, Italian inflation metrics were as expected rather than below consensus like their Spanish, German and French equivalents, and crude benchmarks are attempting to steady the ship following their collapse. Moreover, debt futures may have simply run out of steam having rebounded relatively strongly with Bunds 30 ticks underwater, albeit back above 136.00 within a 136.34-135.81 band, Gilts 14 ticks adrift between 102.23-101.76 bounds and the T-note fractionally firmer, but restrained on the 113-00 handle from 113-11+ to 113-03. Ahead, busy and partly holiday-related pm schedule comprises US Challenger Lay-offs, ADP, IJC, NA trade balances and Fed speakers plus details of next week’s 3, 10 and 30 year Treasury auctions.

05 Jan 2023 - 11:00- Research Sheet- Source: Newsquawk