EUROPEAN FIXED INCOME UPDATE: Gilts gung-ho and BTPs buoyant

Analysis details (10:53)

UK debt rebounded strongly from early Liffe lows to trade at peaks not seen since pre-mini Budget meltdown days, but still face DMO supply at a later than usual time after postponement of the Gbp 3.5 bn 2025 sale to after the delayed Autumn Statement. Nevertheless, the 10 year bond is elevated near the top of its 107.32-106.51 range following a knee-jerk retreat in response to better than expected PMIs and outpacing Bunds that have extended both sides of their Eurex extremes to 140.59 from 139.77 and taken a solid German 2053 tap in stride. However, Italy is leading outperformance at the Eurozone margins amidst broad curve flattening, and leaving US Treasuries trailing behind (T-note a tad below par between 112-21+/112-12 bounds) with no cash backing. Looking ahead, the pm agenda is jam-packed as all remaining US releases are brought forward before the long holiday weekend. 

23 Nov 2022 - 10:53- Research Sheet- Source: Newsquawk