EUROPEAN FIXED INCOME UPDATE: debt divergence post-data, surveys and supply

Analysis details (11:00)

Gilts remain depressed after a sluggish 10 year DMO sale having fallen to a minor new 94.80 Liffe low, with little notable reaction to testimony from MPC member-in-waiting Greene given the strength and depth of the latest UK labour market data that has tipped BoE rate hike probabilities towards 50 bp from 25 bp, albeit still firmly in favour of the latter. However, Bunds are back above par, leaving Bobls to digest a less well received new 5 year German benchmark as books build nicely for the long end Green syndication, while the T-note is nearer 113-22 overnight trough than 113-13+ bottom pre-US CPI and the curve is flatter ahead of the long bond offering even though 3 and 10 year auctions results were relatively weak. 

13 Jun 2023 - 11:00- Fixed IncomeData- Source: Newsquawk