EUROPEAN FIXED INCOME UPDATE: bonds remain firmly bid, bar EZ periphery

Analysis details (11:02)

Gilts remain head and shoulders above the rest on supportive (softer than expected) UK inflation data that has prompted a repricing of BoE tightening expectations and lifted the 10 year benchmark to within single digits of 104.00 (at 103.92 specifically for a 102 tick gain on the day). However, UK debt and STIR contracts are taking a breather and Bunds are also off best levels within a 135.60-15 range in wake of a double-dose of long end German supply that received rather mixed receptions. However, marginal underperformance in BTPs and Bonos may be more risk-related, or in sympathy with OLOs making way for syndicated issuance. Elsewhere, the 10 year T-note is midway between 112-18/10+ bounds in advance of US retail sales, ip and the Usd 15 bn 20 year auction.

15 Feb 2023 - 11:02- Research Sheet- Source: Newsquawk