EUROPEAN FIXED INCOME UPDATE: debt resurgence gathers momentum

Analysis details (10:57)

Bonds overcame several more wobbles before breaking even higher and Bunds continue to lead the way amidst mild Dax underperformance on heightened German economic recession risk tempered by renewed Euro weakness to an extent. Indeed, the 10 year future has now extended to 155.48 and the corresponding yield is declining below the psychological 1% mark more convincingly, while Gilts lag within a 117.66-35 band vs 117.67 at best last Friday and the T-note remains capped around 120-00, just shy of Monday’s 120-02+ peak and its 120-11 pre-weekend pinnacle. Treasuries may well be treading more carefully ahead of the Fed, while UK debt and the 3 month strip will be wary that the BoE could deliver a more aggressive tightening move next week.

26 Jul 2022 - 10:57- Research Sheet- Source: Newsquawk

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