EUROPEAN FIXED INCOME UPDATE: dead cat bounces in debt futures

Analysis details (11:14)

Bonds have staged several recovery rallies, but after encountering little in the way of resistance during Tuesday’s ramp up to fresh cycle highs, each attempt has been thwarted as they continue to retrace gains. The abrupt change in sentiment was also evident at auction given a bigger retention and lower cover, albeit at much discounted average yield, with Bunds subsequently losing 157.00+ status, Gilts down further below 118.00 and the T-note touching 120-00 compared to intraday peaks at 158.33, 118.41 and 120-16, not to mention the lofty perches reached yesterday (159.70, 119.84 and 122-02 respectively). Ahead, busy pm docket and potentially more damaging Fed guidance via Barkin, Harker and Kshkari. 

03 Aug 2022 - 11:13- Research Sheet- Source: Newsquawk