EUROPEAN FIXED INCOME UPDATE: Ifo largely ignored, but Lagarde taken on board
Analysis details (11:22)
Bonds were initially undermined by the firmer rebound in EU stocks as a gauge of wider sentiment, but interestingly did not suffer more than a blip after Ifo and have not rebounded far from lows as equities pare gains, and the break from closer inverse correlation has come in wake of comments from ECB President Lagarde falling in with others on the GC that see 50 bp worth of tightening by September, ie a likely 25 bp hike in July and one at the meeting after. Bunds have been down to 153.28 (-65 ticks on the day vs +18 ticks at one stage), Gilts are now holding up a bit better between 118.88-21 parameters having closed the gap to last Friday’s Liffe close, but not following through and the 10 year T-note is shy of 120-00 within a 120-03+/119-21+ range ahead of the US national activity index and a host of other global Central Bank speakers.
23 May 2022 - 11:21- Fixed IncomeResearch Sheet- Source: newsquawk
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