EUROPEAN FIXED INCOME UPDATE: choppy, consolidative and corrective trade

Analysis details (11:09)

Post-Fed price action has been perhaps even more volatile than normal given the close proximity of other potentially big risk events, like the looming BoE policy pronouncements that come with a new MPR, and NFP tomorrow. However, after bull-steepening in US Treasuries and bond counterparts as a by-product, USTs have flipped to bear-steepening on reflection that the FOMC intends to tighten another 100 bp over the next two meetings and has mapped out a progressive balance sheet rundown. Meanwhile, Bunds have retreated alongside the 10 year T-note between 153.79-152.74 and 119-09+/118-19+ respective extremes, leaving only Gilts still standing upright and above water within a 118.35-117.87 range. Also to come, ECB’s chief economist Lane, US Challenger lay-offs alongside BoE Governor Bailey, IJCs and labour costs plus the CNB and NBP. 

05 May 2022 - 11:09- Fixed IncomeResearch Sheet- Source: Newsquawk