EUROPEAN FIXED INCOME UPDATE: bonds regress as risk assets regroup

Analysis details (10:59)

Debt futures have broken out from relatively confined early EU ranges, and initially to the topside when Bunds reached 154.86 (+40 ticks on the day), Gilts extended to 117.48 (21 ticks over par) and the 10 year T-note printed 120-02+. However, the pop rapidly faded irrespective of a worrying German Ifo survey amidst hawkish ECB commentary and further retracement from Friday’s higher highs, but with the latest leg down coming as stocks rebounded into positive territory in wake of remarks from Russia implying no desire to turn off gas pipelines to Europe. The 10 year benchmarks have subsequently been down to 153.78 (-68 ticks), 117.02 (-¼ point) and 119-21 (-7/32+), and are now biding time before the return of US participants for the pm agenda. 

25 Jul 2022 - 10:59- Research Sheet- Source: Newsquawk

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