EUROPEAN FIXED INCOME UPDATE: debt futures on the verge of full reversal

Analysis details (10:46)

Having notched new peaks for the week only yesterday, bonds are now on track to hand back all their gains barring another change in fortunes between now and the weekend. The tide was turning before the dire US long bond auction, but picked up pace when Fed Chair Powell chose to underline the hawkish part of post-FOMC guidance rather than repeat the relatively short shelf life of the dot plots. Moreover, stand-in St Louis President Paes questioned public perceptions of peak rates vs the prospect that the Fed has to do more and the pendulum continued to swing for Treasuries, EGBs and Gilts. The T-note is towards the base of a 107-10+/23 range, Bunds on the brink of 129.50 between 130.13-129.52 parameters and the 10 year UK benchmark sub-95.00 within 95.32-94.76 bounds.

10 Nov 2023 - 10:46- Research Sheet- Source: Newsquawk