EUROPEAN FIXED INCOME UPDATE: bonds hit the buffers after heady bull run

Analysis details (10:34)

The lack of fresh fundamental drivers and abundance of impending risk events suggests that the retreat in debt futures may be down to positioning and hedging compounded by technical or psychological factors along with a general loss of upside impetus. 4% for the 10 year T-note yield is clearly pivotal, while Bunds appear to have run out of puff just above 139.00 and Gilts have not been able to sustain momentum through 102.00 for obvious reasons, namely the looming BoE policy meeting and newly upgraded Autumn Budget. However, first things first and the small matter of the ECB either side of a batch of top tier US data and before 7 year issuance, as the benchmark bonds trade with respective 137.99-139.02, 101.38-95 and 110-21+/111-05+ ranges.

27 Oct 2022 - 10:34- Research Sheet- Source: Newsquawk