EUROPEAN FIXED INCOME UPDATE: debt futures breach more barriers

Analysis details (10:52)

Bonds have eased off best levels and BTPs are likely taking some time out to digest a heavy dose of Italian supply, but the pull back looks more transitory than many bouts of consolidation seen recently when rebounds have proved to be of the dead cat variety. Indeed, Bunds only paused for breath after reaching 133.13 for a hefty 118 tick gain on the day and 214 tick recovery from midweek Eurex low, while Gilts faded on approach to 95.00, at 94.91 vs 94.33 at the other end of the spectrum and the T-note is hovering nearer the top of its 112-24+/07 overnight range. However, UK debt may have been hampered somewhat by the OBR’s assessment that Government plans to stabilise and reduce debt are relatively modest by historical and international measures rather than the DMO’s 2045 linker syndication that was very sought after.

13 Jul 2023 - 10:52- Research Sheet- Source: Newsquawk