EUROPEAN FIXED INCOME UPDATE: debt futures remain prone, but off worst levels

Analysis details (10:36)

Scant relief in BTPs after Italy’s end of month multi-tranche auction, irrespective of the higher cover ratios and top end of range on offer sold, as demand was clearly boosted by considerably more attractive gross yields. However, bonds have pared some declines after Bunds probed another support level at 134.21 on the way to 134.19 and Gilts got closer to 101.00, at 101.05 having squeezed to 101.44 amidst what may have been a bout of month end buying (extension exceptionally large this April around 0.20 years). Perhaps, EGBs gleaned some traction via mostly softer than forecast or previous EZ sentiment indices, while Treasuries are hovering below par, but above overnight lows awaiting top notch US data and Usd 35 bn 7 year supply. 

27 Apr 2023 - 10:36- Fixed IncomeResearch Sheet- Source: Newsquawk