EUROPEAN FIXED INCOME UPDATE: debt reversal deepens amidst risk-on flow

Analysis details (11:11)

Aside from a rather strange or random rebound in Gilts through parity to 115.73 vs last Friday’s 115.64 Liffe settlement level, bonds have been under pressure for the most part, and led by EGBs. In fact, the weakness has been most pronounced in the Eurozone periphery where Italian BTPs tested support into 122.00 vs a 123.31 peak and 123.85 prior close, while Bunds lost 153.00+ status before giving up 152.00 when their previous Eurex low was breached and recently probed the upper end of a support area seen between 151.66-60. Back to Liffe, Gilts just reversed to 115.10 and almost irrespective of hawkish rhetoric from BoE’s Saunders and the 10 year T-note is towards the bottom of a 118-12+/118-29+ range. 

18 Jul 2022 - 11:11- Fixed IncomeResearch Sheet- Source: Newsquawk

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