EUROPEAN FIXED INCOME UPDATE: debt futures regroup and retrace more declines

Analysis details (10:35)

No obvious catalyst behind the latest upside in bonds, but suffice to say that they decoupled from stocks some time ago and recovery momentum is building towards a breach of big figures in Bunds, Gilts and the 10 year T-note that recently topped out at 144.01, 105.87 and 115-30 respectively (+44 ticks on the day vs -66 ticks at worst, +43 ticks vs -23 ticks and +6/32 vs -5/32+). Clearly, short term technicals have been a factor, while the short end of the UK curve has also digested disappointing data. However, the rebound in USTs may well peter out given looming supply (Usd 3 year and Usd 32 bn 10 year auctions), and EZ debt could be derailed by ECB’s Schnabel as a known GC hawk. 

12 Sep 2022 - 10:34- Research Sheet- Source: Newsquawk

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