EUROPEAN FIXED INCOME UPDATE: Gilts round trip on funding gap jitters

Analysis details (11:00)

Debt futures had already faded from loftier intraday highs before reports suggesting UK Chancellor Sunak could be planning to unveil support measures in excess of Gbp 30 bn hauled Gilts back further and into the red, at 118.19 vs 119.17 at best, with some spill-over to Bunds and US Treasuries, or losses in sympathy. Interestingly, there has been scant reprieve from subsequent headlines quoting Government sources downplaying the size of the forthcoming package (to be revealed around 11.30BST or 12.30BST). Indeed, the 10 year German and US benchmarks remain some way off best levels within 154.74-153.57 and 120-31/12 extremes awaiting a busy pm agenda including top tier US data and the 7 year leg of this week’s Treasury auctions.

26 May 2022 - 11:00- Fixed IncomeResearch Sheet- Source: Newsquawk