EUROPEAN FIXED INCOME UPDATE: bonds rampant after brief relapse

Analysis details (10:44)

Bunds are leading the latest recovery rally in core debt, irrespective of the fact that Gilts may have more fundamental rationale given the magnitude of weakness in UK retail sales against consensus and outright terms. The former hit 131.67 before topping out for a 105 tick gain on the day vs its UK peer ‘only’ climbing 79 ticks at best, to 92.29 and this could be down to somewhat divergent near term ECB/BoE policy perceptions, as the MPC seems all but certain to deliver back-to-back 25 bp hikes and the jury is still out for the GC in September. Meanwhile, the T-note is hovering near the top of its 109-28+/14 overnight range and the curve is flatter with the 10 year yield back below the psychological 4.25% level.     

18 Aug 2023 - 10:43- Fixed IncomeData- Source: Newsquawk