EUROPEAN FIXED INCOME UPDATE: bonds shed some FTQ gains

Analysis details (10:58)

Risk sentiment has improved markedly, but debt retains an underlying bid in corrective trade and retracement following heavy falls in recent sessions and an especially steep decline yesterday. Bunds remain comfortably above 141.00 having rebounded from 140.80 and pulling just just 2 ticks shy of 142.00 when Russian-related aversion reached a crescendo, while Gilts are back above par having retreated from 104.43 to 103.76 (-6 ticks on the day) post-worse than expected UK public finance data and pre-BoE/mini budget, and the 10 year T-note is hovering on the 114-00 handle within a 114-07+/113-27+ band as the clock ticks down to the Fed. Note, Germany’s latest 10 year tap was well received, with a hefty concession offset by notably smaller retention. Next up, CBI trends and more US housing data before attention really turns to the FOMC. 

21 Sep 2022 - 10:58- Fixed IncomeResearch Sheet- Source: Newsquawk