EUROPEAN FIXED INCOME UPDATE: debt futures diverge markedly

Analysis details (11:00)

The underperformance on Life is largely due to holiday closure and weakness elsewhere in the intervening period, but the 10 year benchmark has contained declines through 115.00 to just 10 ticks thus far in stark contrast to its German counterpart that has lost sight of 150.00 and traded as low as 149.59 (-¼ point on the day). The core Eurozone bond looks more ruffled by the recovery in broad sentiment that is boosting Italian BTPs along with reports that the ECB may be ready to unveil a new type of bond buying scheme to cap borrowing costs once APP ends as soon as this Thursday. Elsewhere, US Treasuries are sitting relatively tight and the curve fairly flat in consolidation after last Friday’s post-NFP volatility ahead of a very quiet pm docket aside from employment trends.  

06 Jun 2022 - 11:00- Fixed IncomeResearch Sheet- Source: Newsquawk