EUROPEAN FIXED INCOME UPDATE: ECB hawks arouse EZ bond bears

Analysis details (11:24)

The baton has been passed to Eurozone debt after Gilts took the lead in wake of the BoE from midday yesterday and US Treasuries largely dictated direction pre and post-FOMC, and sellers have returned to the fore in response to increasingly hawkish guidance from the ECB. GC member Villeroy has been particularly vocal and upped the ante on the extent of likely tightening this year, while also talking about the threat that Euro weakness poses to the inflation target. Bunds subsequently slumped beneath 152.00 to 151.67 with the periphery hit even harder, Gilts capped above 118.00 and US Treasuries feeling the heat as the curve tips back below par and a tad steeper ahead of NFP. 

06 May 2022 - 11:22- Fixed IncomeResearch Sheet- Source: Newsquawk