EUROPEAN FIXED INCOME UPDATE: bonds pare losses and Gilts almost flat

Analysis details (10:59)

Some very choppy and erratic price action as debt futures hold above lows, but the short end of the UK rate curve stages a more emphatic and impressive recovery to the extent that the ripples are reaching Gilts. Indeed, the Sonia strip ripped higher through parity to +5 ticks at best compared to -6.5 ticks at the early Liffe lows, and the 10 year benchmark got to within a single tick of closing the opening gap in tandem, at 105.47 vs Wednesday’s 105.48 close and a 104.87 base. However, the moves have faded amidst a lack of clear or obvious rationale beyond the latest BoE/Ipsos inflation attitudes survey showing a pre-energy price cap dip in August 2023/24 inflation projections. Elsewhere, Bunds sit midway between 143.63-142.83 parameters, OATs and Bonos have recouped some pre-French and Spanish auction downside and the T-note is lagging within a 114-20+/115-01 range ahead of a very busy US agenda.

15 Sep 2022 - 10:59- Fixed IncomeResearch Sheet- Source: Newsquawk