EUROPEAN FIXED INCOME UPDATE: more formative signs of a debt revival

Analysis details (10:57)

Bonds have bounced a bit further and Bunds could garner more momentum given a well received German 10 year offering that was twice oversubscribed, but there are gaps still to fill before making a full recovery from Tuesday’s trough and the same applies to Gilts in wake of a strong 2073 DMO auction and T-notes awaiting 2 year FRN plus 5 year conventional issuance. Highs so far come in at 129.14, 95.63 and 108-15 respectively compared to yesterday’s 129.30, 95.67 and 108-17 peaks and Monday’s w-t-d pinnacles, at 129.56, 96.05 and 108-25+. Nevertheless, price action is decidedly more encouraging or less destructive than it has been for a while and decent blocked curve flatteners underpinned Treasuries overnight. Also ahead, US weekly MBA mortgage applications and durable goods that can be a wild card.

27 Sep 2023 - 10:57- Research Sheet- Source: Newsquawk