EUROPEAN FIXED INCOME UPDATE: debt divergence as geo fears recede

Bonds remain whippy and prone to headline risk, largely on the Russia-Ukraine front, but having kicked off on a firmer footing for choice the ensuing price action has been mainly on the downside to see Bunds, Gilts and the 10 year T-note all trade at deeper lows of 164.71, 119.39 and 125-20 respectively. The main catalyst, further conciliatory noises and moves from the Russian side, while a sluggish Bobl auction has also kept German debt capped in contrast to a strong DMO offering.