EUROPEAN FIXED INCOME UPDATE: debt futures regroup after risk-related retreat

Analysis details (11:01)

It remains to be seen whether bonds can withstand more pressure from the revival in other assets and settle high enough to keep their recovery momentum going from a technical perspective, but they have pared some declines from deeper intraday lows that saw Bunds get to within 5 ticks of 154.00 vs 155.12 at best, Gilts reverse from 120.67 to 120.16 and the 10 year touch 119-07 compared to a 119-23+ overnight session high. Moreover, the benchmarks are still a long way above cycle troughs posted at the start of the week and that could be constructive in itself and provide more encouragement for dip buyers and those hedging on the side of a longer lasting correction. Prior to Friday’s close, US import and export prices, preliminary Michigan sentiment and more Central Bank speak vis the Fed and ECB.

13 May 2022 - 11:01- Fixed IncomeResearch Sheet- Source: newsquawk