EUROPEAN FIXED INCOME UPDATE: minor wobble after solid Bobl sale, on balance

Analysis details (10:58)

Debt futures are hovering nearer intraday highs in wake of Germany’s latest 5 year auction that was almost twice oversubscribed, but needed a 30 bp concession from the previous offering and a slightly larger retention to eclipse the prior bid-to-cover ratio. Bunds managed to breach Friday’s high on the way to reaching 131.58, Gilts are back above 93.00 and the T-note is just shy of best levels within a 111-16/04 overnight range. As such, momentum bodes well for bonds, but they face several hurdles from a fundamental and technical perspective before getting closer to recent peaks and really gathering enough steam to mount a meaningful recovery.   

11 Jul 2023 - 10:58- Research Sheet- Source: Newsquawk