EUROPEAN FIXED INCOME UPDATE: debt futures fly and curves bull-steepen

Analysis details (11:07)

Typically hawkish-leaning remarks from ECB’s Kazimir hardly rattled bonds that continue to bounce firmly from knee-jerk lows seen after the Bank ‘surprised’ with a half point hike on Thursday and the clear catalyst in the Eurozone at least were the flash PMIs that crashed across the board, but particularly in terms of manufacturing. Bunds ‘topped out’ at 154.32 for huge 214 tick gain on the day and an even more eye-watering 463 ticks rebound from yesterday’s Eurex trough to put the scale of the move in context, while Gilts reached 117.43 from a 116.41 low and 116.24 prior Liffe close and the 10 year T-note almost made a full point round trip from 118-30, at 119-24 having closed at 118-29. Still to come, Canadian retail sales and the US PMIs.   

22 Jul 2022 - 11:07- Fixed IncomeResearch Sheet- Source: Newsquawk