EUROPEAN FIXED INCOME UPDATE: divergence in debt circles

Bonds have been a bit less volatile than they were on the latest iteration of ‘super Thursday’, thus far at least, though trade remains very volatile and ranges relatively wide with some notable deviations to the central theme or trend developing. Bunds continued their revival beyond a 165.17 Fib level (50% retracement of yesterday’s dump from 165.96 peak to 164.37 trough) with the aid of some stops perhaps by another 20 ticks, but petered out around 25 bp in 10 year yield terms, while Gilts are still struggling to regain a hold on the 120.00 handle and US Treasuries are hovering just below overnight highs with the curve retaining a flatter profile. However, Italian BTPs are floundering and underperforming in part due to supply issues and irrespective of the nation’s head of debt at the Treasury contending that that sales are not significant (size rather than scale presumably).

11 Feb 2022 - 11:16- Fixed Income- Source: newsquawk