EUROPEAN FIXED INCOME UPDATE: bonds licking even deeper wounds

Analysis details (11:02)

In some respects, debt futures have ‘enjoyed’ better fortunes or at least regained some composure after looking destined for another complete meltdown when Bunds slumped to 128.69, Gilts plunged to 94.82 and the T-note to the edge of 108-00 at 108-05. However, sellers were lying in wait yet again when the respective 10 year benchmarks bounced to 129.02, 95.64 and 108-12+ for gains of 20 ticks, 40 ticks and 7/32 on the day. Nevertheless, Bunds are holding above 129.00 and BTPs defended 110.00 in wake of reasonable German and Italian auctions in relief more than positive response to the results. For the record, the expected reduction in Germany’s Q4 issuance remit was confirmed and was a positive development, but the bulk of the cut was short end. 

26 Sep 2023 - 11:02- Research Sheet- Source: Newsquawk