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

Analysis details (10:29)

EGBs did not derive enough extra incentive to extend gains on the back of soft Eurozone inflation data or dovish remarks from ECB’s Panetta and it could well be a case of ‘buy rumour/sell fact’ in the case of the former as national reports were clearly flagging a downside bias against consensus. Moreover, sources suggesting a PEPP talk in December may have capped Bunds and their peers, while ongoing underperformance in UK debt could be supply-related given two additional auctions in the next DMO issuance remit and Treasuries are likely observing caution ahead of US PCE and IJC, if not pending home sales and comments from Fed’s Williams. Bunds have backed away from 133.00 yet again within 132.96-44 bounds, Gilts are towards the base of their 96.94-97.68 range and the T-note closer to 110-05+ than 110-14.    

30 Nov 2023 - 10:29- Research Sheet- Source: Newsquawk