EUROPEAN FIXED INCOME UPDATE: data reprieve for EGBs, but debt still net defensive

Analysis details (10:35)

Bunds bounced firmly in wake of the eagerly awaited pan Eurozone inflation release as the headline print came in softer than expected and core measures matched consensus and thereby only inched up marginally from prior levels. However, this still poses a problem for the ECB and the 10 year benchmark has faded recovery gains from a deeper 134.70 Eurex low, while Gilts and the T-note remain cautious awaiting US core PCE and a raft of Fed speakers having fallen to new troughs, at 102.80 and 114-09 respectively. Elsewhere, French OATs are hovering just above par following the firmer national CPI prints earlier in the session and in anticipation of a new 10 year bond launch in early April, while Italian BTPs are outperforming in wake of soft inflation readings.

31 Mar 2023 - 10:35- Research Sheet- Source: Newsquawk