EUROPEAN FIXED INCOME UPDATE: bonds lose some momentum after upside extension

Analysis details (10:33)

BTPs are holding a healthy 100+ tick gain on the day in wake of solid end of month Italian auction results, but are off best levels in sync with Eurozone peripheral and core counterparts after reaching 120.67 at one stage. Bunds topped out at 141.73 earlier and may have run out of incentive given the remaining German state CPI reports that were less benign than NRW on a y/y basis, while Gilts have actually reversed through parity to 105.73 vs Monday’s 105.86 Liffe close awaiting BoE commentary and after looking reluctant to join the recovery rally from the outset. Conversely, the T-note is still standing firm around 117-17+ within a 113-20+/113-03+ overnight range, awaiting US consumer confidence and Fed discount rate meeting minutes with less anticipation than the FOMC accounts that were deemed dovish on the eve of Thanksgiving last week.

29 Nov 2022 - 10:33- Research Sheet- Source: Newsquawk