EUROPEAN FIXED INCOME UPDATE: core bonds regroup awaiting BoE and ECB

Analysis details (10:56)

Gilts continue to lead the debt revival and have topped 105.00 from a Liffe low just shy of 104.00, while Bunds are latching on with a lag between 140.78-139.53 parameters vs the 140.45 midweek Eurex close and the T-note is poised midway with its 114-30+/19+ overnight range. The 10 year benchmarks look buffered by broad risk aversion, but also ongoing curve flattening in wake of the Fed’s hawkish guidance via the SEP, and perhaps the fact that ensuing rate hikes from other Central Banks are in line with expectations. However, it remains to be seen whether the BoE and ECB stick to their script and what is signalled in terms of future rate moves and policy adjustments in general.  

15 Dec 2022 - 10:56- Fixed IncomeResearch Sheet- Source: Newsquawk