EUROPEAN FIXED INCOME UPDATE: EU debt revival leaves USTs trailing

Analysis details (10:46)

A familiar pattern emerged during am trade in Europe, as Bunds and Gilts staged a firm recovery rally that Treasuries could not match or even keep up with, but the catalyst is not obvious. Headlines on the geopolitical front may have been a factor given Russia’s Deputy Foreign Minister reporting that nuclear forces are on standby, while outperformance in UK STIR contracts also reflects pared back BoE rate hike expectations on recession dynamics. However, the T-note would surely have spiked on the former rather than flagging below par within a 115-01/114-22+ range in contrast to Bunds rebounding to 142.55 (+33 ticks vs -23 ticks at the Eurex low) and Gilts to 106.88 (+26 ticks vs -52 ticks at worst). Ahead, US jobless claims and the refunding announcement amidst more Central Bank remarks.   

08 Dec 2022 - 10:46- Research Sheet- Source: Newsquawk