EUROPEAN FIXED INCOME UPDATE: bonds straddle parity after big figure swings
Analysis details (11:02)
Volatile trade in debt futures following the BoJ’s policy meeting overnight, UK inflation data and commentary from ECB’s Villeroy, as Bunds and Gilts settle down after making round trips from early peaks to troughs within 139.99-138.97 and 104.97-103.97 respective extremes. To recap, upside was seen in the slipstream of JGBs when a clear majority of the market looking for a further YCC target range extension were left overexposed, but then core and services prices in the UK beat consensus to thwart bulls along with remarks from the GC member that contradicted dovish source reports out on Tuesday. However, US Treasuries are holding a firmer line and the curve is a tad flatter as the spotlight turns towards a packed pm agenda, including top-tier US data, Fed speakers and 20 year note supply. For the record, long-dated German taps were reasonably well received, but hardly impacted.
18 Jan 2023 - 11:02- Fixed IncomeResearch Sheet- Source: Newsquawk
Subscribe Now to Newsquawk
Click here for a 1 week free trial
Newsquawk provides audio news and commentary for over 15,000professional traders and brokers worldwide. Services include:
- Real-time audio coverage from 0630 to 2200 London time plus Asia-Pac 2200 to 1000 London time
- Teams of analysts covering equities, fixed income, FX, energy, and metals markets
- Real-time scrolling news service with instant analysis
- Daily and weekly pre-market research and calendars
- Video updates covering near-term key risk events & primary trading themes
- One-to-one chat with our expert analysts