EUROPEAN FIXED INCOME UPDATE: data and supply keep debt futures occupied

Analysis details (11:01)

Solid German Schatz and UK linker auctions given looming risk events and a less well received 3 year note offering to kick off this week’s US refunding. However, bonds are off best levels having recovered from Monday’s sell-off sparked by BoJ Governor Ueda’s Yomiuri revelations, and Gilts may be taking heed of a hawkish-sounding parliamentary hearing by soon-to-be MPC member Breeden to counter some of the UK jobs metrics momentum. Moreover, the 10 year benchmark and its core Eurozone equivalent could have run into round number resistance ahead of 95.00 and 131.00 having peaked at 94.97 and 130.99 respectively, and the T-note may be respectful of a similar psychological level in yield as it hovers above 4.25% and just shy of the 109-28 overnight high. Regardless, the key events start tomorrow with US CPI preceding the ECB and retail sales before Chinese activity data on Friday.   

12 Sep 2023 - 11:01- Research Sheet- Source: Newsquawk