EUROPEAN FIXED INCOME UPDATE: debt futures reverse course yet again

Analysis details (10:58)

Germany’s 10 year sale required a hefty retention to ensure that cover was respectable, but the UK’s green auction drew decent demand at a lower yield so it stands to reason that Gilts are holding up better than Bunds. However, both are well off best levels after the core Eurozone bond popped to 137.50 in knee-jerk reaction to EZ inflation data showing a considerably softer than expected headline, but firmer underlying measures, with Bunds recently down to a marginal low at 136.80, while their Liffe peer retains ¼ point gain near the middle of a 104.50-105.02 range. Elsewhere, the T-note is hugging the upper end of its 114-30/17+ overnight boundaries ahead of a raft of data and the Fed.    

01 Feb 2023 - 10:57- Research Sheet- Source: Newsquawk