EUROPEAN FIXED INCOME UPDATE: deep fade in debt futures

Analysis details (10:19)

There is a way to go and quite a lot left on the agenda, but the omens do not bode well for bonds at present, and for Gilts in particular that recently dipped a tick below par and have hardly bounced even though the DMO received a rousing reception for its latest 15 year offering. Instead, the latest leg lower is being front run by US Treasuries and could be ahead of the Usd 52 bn 5 year note auction rather than housing data or Fed chair Powell, while the failure to sustain early upside momentum may also be a telling factor. Bunds are now just off a new 128.42 low vs 129.02 high, Gilts only three ticks above worst levels within a 92.69-93.08 range and the T-note nearer 106-06 than 106-18.

25 Oct 2023 - 10:19- Research Sheet- Source: Newsquawk