EUROPEAN FIXED INCOME UPDATE: bonds remain toppy amidst weighty supply

Analysis details (10:27)

The DMO may feel somewhat hard done by as Gilt futures have slipped even though demand for the new 10 year benchmark was strong and the tail relatively short, but UK STIR contracts have bounced a bit further awaiting remarks from BoE Governor Bailey. Meanwhile, a speech from ECB’s Schnabel is typically hawkish and debt is still mired in issuance via syndication and conventional sales, as Bunds and BTPs hover above lows of 136.41 and 112.81 respectively. Back to Liffe, Gilts have retreated from a minor new 102.14 peak to sub-102.00 again, while the T-note retains a firm underlying bid on the 114-00 handle between 114-11/19+ parameters ahead of the December NFIB business optimism survey, Fed Chair Powell, wholesale sales and Usd 40 bn 3 year auction.

10 Jan 2023 - 10:27- Fixed IncomeResearch Sheet- Source: Newsquawk