EUROPEAN FIXED INCOME UPDATE: bonds suffer even bigger fall from grace

Analysis details (10:47)

Debt futures remain at loftier levels within higher ranges, but price action has followed an all too familiar pattern in terms of a failure to sustain recovery momentum. In fact, the latest retreat may be more damaging as Bunds, Gilts and the T-note all reversed from peaks not seen for a few sessions having topped out at 135.30, 102.67 and 111-19 respectively to lows very close to parity or negative territory in the case of the latter. However, month end demand may yet give Treasuries a boost given a relatively lengthy index duration for February 28, assuming looming PCE data doesn’t miss expectations by a distance and prop up bonds in the meantime. Also to come, up to five Fed speakers slated on various economic calendars.

24 Feb 2023 - 10:47- Fixed IncomeResearch Sheet- Source: Newsquawk