EUROPEAN FIXED INCOME UPDATE: EGBs beat sharp retreat, and others follow

Analysis details (10:58)

Bunds and their Eurozone peers are extending declines to fresh intraday lows and the downside pressure is spreading to the extent that Gilts almost half point lower on the day and US Treasuries have erased all and a tad more of the gains held since the post-Chinese data bounce overnight. The core EZ bond recently hit 153.11 to nudge the corresponding yield over 1%, its UK equivalent slipped to 119.78 from Friday’s 120.24 Liffe close and the T-note dipped below par within a 119-01+/18 range vs a 119-05+ close. The catalyst, or a clear contributor for the return to bearish price action following correction prior to Friday seems to be comments from ECB’s Villeroy early in the EU session stating that June will be a key petting and the Bank should at least get to a neutral rate. Ahead, several NA releases and more Central Bank rhetoric, albeit from the Fed, Riskbank and BoE. 

16 May 2022 - 10:58- Research Sheet- Source: newsquawk