EUROPEAN FIXED INCOME UPDATE: EZ bonds on a roll and infectious

Analysis details (10:18)

Bunds are roaring back from their latest lows, irrespective of relatively hawkish commentary via ECB’s Schnabel, as Russia’s invasion of Ukraine shows little sign of abating and President Putin’s demand for gas payments in Roubles continues to reverberate. The 10 year German debt future also saw some stop-fuelled and tech-driven price action when crossing the psychological 159.00 line earlier as a Fib retracement level (159.03) and recent session peak (159.05 from last Thursday) were located just above, but stopped just a single tick shy of the 159.64 high from March 25. Meanwhile, Gilts popped a tick over 122.01 before waning and the 10 year T-note has pared some overnight losses within a 121-27/122-08+ band, but remains underwater with the curve re-steepening following more pronounced bear-flattening or inversion post-payrolls on Friday. Ahead, US factory orders, a Eurogroup meeting and potential comments from BoE’s Cunliffe.

04 Apr 2022 - 10:18- Fixed IncomeResearch Sheet- Source: Newsquawk