EUROPEAN FIXED INCOME UPDATE: bonds routed all over again
Analysis details (11:03)
The T-note managed to tread water for the most part within a 107-27/15+ range and perhaps with some leverage from blocked curve flatteners, but Bunds and Gilts have been in freefall alongside Eurozone periphery debt. Angst in BTPs was prompted by Italy’s budget and exacerbated by month end supply, but the latest collapse elsewhere looks more momentum-based and technically driven given no obvious fresh fundamental catalyst. The 10 year German and UK benchmarks breached deeper chart and psychological supports on the way down to 127.60 and 93.43 respectively and it seems as though the rot may only stop when corresponding yields approach or reach 3% and 4.50% respectively. Ahead, several primary US data points, Fed and ECB speakers plus the Usd 37 bn 7 year auction.
28 Sep 2023 - 11:02- Fixed IncomeResearch Sheet- Source: Newsquawk
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