EUROPEAN FIXED INCOME UPDATE: Gilts upended and BTPs back under pressure

Analysis details (10:49)

Bonds have reversed course amidst broad curve steepening, but UK debt is markedly underperforming having held up better than its core counterparts last week when the BoE matched the Fed and ECB in the rate hike stakes, but was less convicted about the latest tightening. The 10 year bond has recoiled just over 100 ticks from 103.67 to 102.56, while Bunds are holding within half point of Friday’s Eurex settlement level, and a fraction above 137.00 between 137.76-03 parameters and the T-note remains in the upper half of a 115-00/114-00 range. Turning to the Eurozone periphery, BTPs are the laggards after topping out at 112.51 and seemingly finding it harder to digest more hawkish ECB remarks than others, as Kazmir warns that rates will not only need to go into restrictive territory, but stay there much longer.

19 Dec 2022 - 10:49- Research Sheet- Source: Newsquawk