EUROPEAN FIXED INCOME UPDATE: bonds remain bid regardless of supply issues

Analysis details (10:49)

There was clearly room for more concession to ensure that the latest 2053 DMO offering had a shorter tail, but Gilts actually eked a marginal new Liffe peak at 95.72 compared to 95.20 low as debt futures retain strong upside momentum. Meanwhile, Bunds extended their rally to 133.97 before fading having been down to 133.08 at one stage and the Schatz contract is holding above 116.00 in wake of a well received new 2 year German benchmark by almost all conventional measures, including an average yield 3 bp under coupon, a decent 1.5 cover ratio and retention given the relatively chunky Eur 6 bn amount auctioned. Elsewhere, the T-note popped over 113-00 within a 113-02+/112-19+ range awaiting a busy pm agenda comprising US retail sales, ip and business inventories along with Canadian CPI. 

18 Jul 2023 - 10:49- Research Sheet- Source: Newsquawk