EUROPEAN FIXED INCOME UPDATE: bonds mixed amidst data, surveys and supply

Analysis details (10:47)

Choppy and divergent price action in debt futures as EZ bonds digest decent auction results (overall) from Germany and Italy, while Gilts regroup after underperformance on the back of better than expected UK data. Bunds are holding above 144.00 having fallen to a marginal new Eurex low at 143.86 (64 ticks below par) in sympathy with their UK peers, the Schatz is closer to 122.44 high than 122.13 low and BTPs are narrowly positive within a 117.80-05 range. Back to Liffe, and the 10 year benchmark is eyeing 106.00 between 105.94-42 parameters, but still lagging Treasuries that are firm across the curve (T-note just shy of 116-00 vs a 115-20+ low compared to yesterday’s 115-19+ close) pre-US CPI, irrespective of Monday’s poorly received 3 and 10 year offerings, and with the 30 year leg still to come.

13 Sep 2022 - 10:47- Research Sheet- Source: Newsquawk