EUROPEAN FIXED INCOME UPDATE: debt divergent and very volatile

Analysis details (10:52)

The start of a new trading month is often characterised by choppy trading conditions as positions are adjusted and reset after being rebalanced, but multi-centre market holidays are exacerbating price moves on this occasion, not to mention the proximity of several major risk events, such as the FOMC, other Central Bank policy meetings and NFP. Meanwhile, risk sentiment is broadly downbeat and the mood in crude and other commodities is even more sour as China continues to suffer from Covid and the EU ponders whether to embargo Russian oil. Bunds have bounced firmly after hitting a new 153.25 (-34 ticks on the day) low to top 154.00 at 154.12 (+53 ticks)  before fading and Eurozone periphery bonds are mixed, while US Treasuries remain softer for choice and the curve steeper as the 10 year note hovers below 119-00 within a 119-01/118-22+ range. Ahead, NA manufacturing PMIs, the US ISM and construction spending.

02 May 2022 - 10:52- Fixed IncomeResearch Sheet- Source: Newsquawk