EUROPEAN FIXED INCOME UPDATE: data inspires firmer recovery in debt futures

Analysis details (10:55)

EGBs were already clawing back some of their heavy losses before below forecast German retail sales provided a bit more impetus, but weaker than expected French CPI offered more incentive and the ensuing softer than consensus pan-Eurozone readings were the icing on the cake. Indeed, Bunds extended their rebound to exactly 100 ticks from Eurex low to 128.46 high, OATs probed 123.00 at 123.05 from 121.98 at worst and even BTPs got close to 110.00 from sub-109.00 irrespective of mixed Italian inflation metrics. Meanwhile, Gilts reached 94.18 compared to their early 93.62 Liffe base and the T-note is hovering close to the top of a 108-8+/107-26 range. Looking ahead, several US macro releases have potential to scupper the latest bond bounce, but there could well be some last minute duration demand to keep momentum going into the end of September and Q3. 

29 Sep 2023 - 10:55- Fixed IncomeData- Source: Newsquawk