EUROPEAN FIXED INCOME UPDATE: debt recompense rumbles on

Bond bears continue to bite back following their re-emergence as a driving force yesterday and at the current rate of retreat it might not be long before sellers are back in complete control. In fact, Bunds have been down to 168.67 for a 108 tick decline on the day and 245 tick cumulative retracement from Tuesday peak, while Gilts tested support just ahead of 124.00 at 124.06 compared to their 125.03 midweek Liffe close and 126.81 pinnacle reached during the prior session. Similar story for US Treasuries, but futures are holding around parity and the curve profile is essentially flat before a packed pm agenda, but looking for the outcome of Russia-Ukraine ceasefire talks first and foremost.