EUROPEAN FIXED INCOME UPDATE: EGBs plumb new depths as USTs steady ship

Analysis details (11:09)

It’s highly debatable whether things would have been any different if Liffe was open, bar the obvious extra liquidity, as Eurozone debt drew little support or encouragement from relative stability in US Treasuries on the way down to fresh cycle lows and only partially recovered when ppi data came in below consensus. Looking at Eurex price action in more detail, Bunds only paused briefly and barely above their prior low, at 150.50 vs 150.49 before tripping stops to 150.29 for a 72 tick loss on the day and a cumulative collapse of 445 ticks in under 5 trading sessions. Similar story for the semi-core and periphery that had French and Spanish supply to absorb, while USTs are holding off worst levels in advance of a slew of data and further Fed speak via Logan and Mester.

02 Jun 2022 - 11:08- Fixed IncomeResearch Sheet- Source: Newsquawk