EUROPEAN FIXED INCOME UPDATE: omens look a bit less ominous for bonds

Analysis details (10:42)

There is still some way to go before the close of business on Wednesday, but debt futures have regrouped and the latest recovery rally appears to be a bit more promising given the fact that equities have extended to the upside and one major US bank tipped the scales in favour of stocks over bonds in terms of portfolio rebalancing for the end of March, Q1 and FY 2022/23. Of course, the conventional 2-day settlement or spot date in FX markets does not strictly apply to other assets, so lots can still happen/change before Friday as Bunds breach the halfway mark of yesterday’s downfall to reach 136.28 vs 135.47 at worst, Gilts cross the 104.00 line, at 104.08 compared to the 103.56 early Liffe low and the T-note rebounds to 114-27+ having been as low as 114-14+ overnight. Ahead, MBA weekly US mortgage applications, pending homes sales and the House hearing on recent bank collapses plus the final leg of this week’s auction remit comprising Usd 35 bn 7 year notes.  

29 Mar 2023 - 10:42- Research Sheet- Source: Newsquawk