EUROPEAN FIXED INCOME UPDATE: even steeper debt retracement

Analysis details (11:03)

The latest downturn in bonds has been more measured, but no less deep as Bunds relinquish another round number at 145.00 on the way to 144.85 (-164 ticks on the day vs +31 ticks at best), Gilts slip closer to 112.00, at 112.06 (103 ticks under par vs -23 ticks at the early Liffe high) and the 10 year T-note recoils to 116-14 (-12/32 vs +7/32 at one stage). Crude and China were the initial catalysts, while Sintra has produced a steady stream of hawkish ECB remarks and supply is another factor given decent demand for the latest UK DMO linker, but another German Bobl launch that took some yield concession and retention to ensure a 1.3 cover. Ahead, busy pm agenda with US data, regional surveys, 7 year auction and Fed’s Daly all slated.  

28 Jun 2022 - 11:03- Fixed IncomeResearch Sheet- Source: Newsquawk

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