EUROPEAN FIXED INCOME UPDATE: debt biding time before the big risk events

Analysis details (10:51)

Bonds remain choppy and less certain than they appeared to be when Fed Chair Powell gave warning of a hawkish reaction to recent hot US data next week and in terms of the peak rate protected via revised dot plots that will be published in conjunction with March’s FOMC. However, after Tuesday’s rout and big midweek retracement, Bunds, Gilts and the T-note have recoiled into narrower bands (131.77-07, 100.50-06 and 110-31+/23+) awaiting further guidance/direction that will ultimately come from tomorrow’s NFP via the BoJ, if not Challenger layoffs and initial claims in the interim. For context, the 10 year benchmarks have seen w-t-d extremes of 130.55-132.02, 99.32-101.05 and 110-20+/111-17, with the Treasury yield very pivotal/sticky around 4%.

09 Mar 2023 - 10:51- Research Sheet- Source: Newsquawk