EUROPEAN FIXED INCOME UPDATE: debt in need of fresh sense of direction

Analysis details (10:35)

Bonds have backed off further from best levels and their latest recovery peaks in what could be deemed a typical pre-data bout of position paring. However, it could just be that having digested plenty of hawkish ECB commentary and then responding to yesterday’s dovish BoC policy meeting, bulls and bears have run out of incentive awaiting the next catalyst that could well come via Thursday US data and 7 year issuance, and PCE tomorrow that will vie with month end dynamics for attention, if sufficiently outside consensus or the forecast range. For now, Bunds sit just above 138.00 within wider 138.62-137.91 bounds, Gilts just beneath 105.00 between 105.66-104.73 parameters and the T-note close to 115-00 having dipped to 114-30+ and topped out at 115-09. 

26 Jan 2023 - 10:35- Fixed IncomeResearch Sheet- Source: Newsquawk