EUROPEAN FIXED INCOME UPDATE: bonds regain upside momentum

Analysis details (10:50)

It remains to be seen whether debt futures can extend further to the upside or retain enough underlying support to withstand any downside pressure that could be seen if US CPI metrics top consensus. For now, the omens look constructive even though Bunds and Gilts are hovering just beneath intraday peaks and under Tuesday’s recovery highs having ‘topped out’ at 131.40 and 93.26 respectively in wake of strong/solid 10 year UK/German auctions. Meanwhile, the T-note is close to the top of its 111-18+/095+ range and benchmark yields are some way off recent round number-plus pinnacles. However, inflation data aside, several Fed and ECB speakers are due and Usd 32 bn 10 year supply.

12 Jul 2023 - 10:50- Fixed IncomeData- Source: Newsquawk