EUROPEAN FIXED INCOME UPDATE: debt futures concede ground after decent rebound

Analysis details (10:46)

In similar vein to the lack of clear drivers behind swings in currency circles and the Pound in particular, bonds appear to have hit the buffers for little apparent reason other than corrective price action and positioning for this week’s main data release - US CPI. Technical and psychological resistance may also be a factor along with fatigue or a loss of momentum given the magnitude of recovery rallies already staged so far this week. For context and perspective, Bunds reached 138.74 earlier having been down at 135.76 at one stage on Tuesday, Gilts peaked at 103.70 on Liffe yesterday vs 99.92 the day before and the T-note touched 110-25+ overnight compared to its 109-14 w-t-d trough. Back to present day, and the 10 year benchmarks are around 138.07, 103.07 and 110-14 within 138.74-137.97, 103.50-102.77 and 110-25+/12+ respective intraday extremes.

10 Nov 2022 - 10:46- Fixed IncomeResearch Sheet- Source: Newsquawk