EUROPEAN FIXED INCOME UPDATE: bonds on edge as big risk events loom

Analysis details (10:35)

A bit more volatility and jockeying for position through contrasting EU PMIs, but mainly in apprehension of the headline acts on super Thursday that start at midday with the BoE. Bunds and Gilts have both seen range extension, but are currently diverging within 168.81-51 and 122.39-20 boundaries and befitting what is expected from the MPC and ECB’s GC in terms of a rate hike in contrast to no policy action. Note also, UK debt may be bracing for the OFGEM energy rise result and ensuing measures from Chancellor Sunak to cushion the blow for consumers. Elsewhere, US Treasuries appear rather sidelined, but could yet get their share of the action via a busy agenda including more NFP proxies and inflation indicators via PMIs and the ISM.

03 Feb 2022 - 10:34- Fixed Income- Source: Newsquawk

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