EUROPEAN FIXED INCOME UPDATE: bonds remain bunkered and EGBs especially

Analysis details (10:54)

The latest double-dose of longer dated German supply and a UK linker were all probably too small to impact or change the tone irrespective of how well received, but tonight’s 10 year US auction may well influence proceedings in the aftermath of US CPI data. Meantime, it’s more of the same for debt that continues to descend after bouts of consolidation and led by the Eurozone in wake of hawkish guidance from the ECB. To recap, Villeroy was particularly concerned about inflation becoming more entrenched and said the sprint to catch up may be over and the Bank is now entering the long haul leg of its quest to get CPI back to target. Conversely, the Fed and BoE outlooks seem more inclined towards final 25 bp hikes before a pause and this has prompted further divergence as Bunds hit new Eurex lows at 135.46, but Gilts and T-notes hold above 103.00 and 115-00 respectively. 

12 Apr 2023 - 10:54- Fixed IncomeData- Source: Newsquawk