EUROPEAN FIXED INCOME UPDATE: bonds turn mixed after bouncing uniformly

Analysis details (11:09)

The general risk tone and market mood remains negative, but not all safe havens are retaining a bid. In fact, Gilts have retreated further from initial Liffe peak to new trough below parity and JGBs are lagging regardless of more efforts by the BoJ to keep yields under the ceiling. The 10 year UK benchmark is hovering near the base of a 91.29-90 range and its Japanese equivalent is at the bottom of a 144.58-71 band with the former perhaps wary of looming ratings reviews and reports that several English councils are struggling for cash. Meanwhile, Bunds have pared back from 127.90 towards their earlier 127.52 Eurex low and the T-note also between 105-28+/13+ parameters post-Fed’s Powell and pre-Harker and Mester in the absence of US data. 

20 Oct 2023 - 11:09- Research Sheet- Source: Newsquawk