EUROPEAN FIXED INCOME UPDATE: SNB sets off another debt landslide

Analysis details (11:04)

Not a lot of time for further reflection on the Fed, or ECB efforts to address Eurozone fragmentation for that matter, as the SNB’s largely, if not wholly unexpected 50 bp hike and fairly hawkish guidance prompted the latest bond rout. The move naturally spilled over to rate expectations elsewhere, and the Eurozone in particular where Bunds recently lost grip of the 142.00 handle and the periphery is unravelling gains forged on the back of the ECB to leave BTPs closer to 116.00 than 119.20. Even Gilts that were displaying resilience in anticipation of 25 bp from the BoE at midday have caught contagion and just dipped under 112.00 from 113.00+ and US Treasuries have reverted to bear-steepening ahead of housing data, jobless claims and the Philly Fed, with the 10 year T-note sub-115-00 within a 115-28/114-16+ range.

16 Jun 2022 - 11:04- Fixed IncomeResearch Sheet- Source: Newsquawk