EUROPEAN FIXED INCOME UPDATE: more range extension and divergence in debt

Analysis details (10:50)

Bonds remain becalmed, relatively speaking, but have pushed their intraday boundaries on both sides, eyeing broad risk sentiment and oil that is consolidating after yesterday’s whipsaw price action. Bunds and Eurozone peers are also keeping tabs on running ECB rhetoric for any firm clues about the size of next month’s rate hike, but the ongoing uncertainty did not seem to deter Bobl buyers at auction. However, German debt is hovering below par with 5 and 10 year futures around 119.78 and 140.14 respectively within 120.00-119.70 and 140.46-139.91 extremes, while Gilts are just above 106.00 between 106.38-105.73 parameters-post 2073 DMO linker syndication and the T-note continues to outperform having rebounded to 112-18 from a 112-06+ overnight low. Note, volumes are fairly light and thinning ahead of Thanksgiving, though the last US auctions loom amidst Fed speakers on the eve of FOMC minutes that could all prompt a rise in turnover and livelier price action.

22 Nov 2022 - 10:50- Research Sheet- Source: Newsquawk