EUROPEAN FIXED INCOME UPDATE: mini UK debt revival, but no respite for STIRs

Analysis details (10:45)

Gilts have regained a degree of composure after holding in just above 95.00 and ‘settling’ roughly halfway between 97.38-95.11 intraday extremes, and it could merely be a case of consolidation or a psychological recovery as cumulative losses exceeded 10 full points from the knee-jerk and fleeting peak on Thursday when the BoE opted to maintain a 50 bp tightening clip rather than picking up the pace in keeping with other Central Banks. However, UK bonds remain very top heavy on issuance and QT dynamics and the Sonia strip has been hit even harder than they were post-budget with some contracts down as much as 86 ticks. Elsewhere, Bunds remain depressed alongside T-notes towards the base of 138.21-139.22 and 111-26/112-22+ respective ranges ahead of a raft of Fed, ECB and BoE speakers and amidst EU plus US supply.

26 Sep 2022 - 10:45- Research Sheet- Source: Newsquawk

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