EUROPEAN FIXED INCOME UPDATE: decent debt revival all things considered

Analysis details (10:53)

Bunds may have gleaned some technical encouragement after holding in 4 ticks above yesterday’s Eurex low that matched the trough from last Tuesday for good measure and therefore forms a more solid chart base. However, the subsequent spike to 138.32 for a 35 tick gain on the day was inspired by an even more emphatic rise in Gilts to 104.92 at best (68 ticks above par vs +5 ticks at the Liffe low), irrespective of bearish UK fiscal news on paper. A really mixed bag of preliminary PMIs and solid demand for conventional and syndicated supply have hardly impacted, but overall risk sentiment is waning and there has been a distinct lack of Central Bank rhetoric thus far to leave bonds in consolidation mode rather than pressured due to hawkish guidance. Turning to Treasuries, mildly firmer a tad flatter in context of the curve as the spotlight switches to the US PMIs, Richmond Fed and 2 year note issuance.   

24 Jan 2023 - 10:53- Fixed IncomeResearch Sheet- Source: Newsquawk