EUROPEAN FIXED INCOME UPDATE: some respite for debt pre-Powell

Analysis details (10:29)

Bonds are holding off worst levels, but not before Bunds and Gilts succumbed to more pressure that pushed the 10 year benchmarks down to new post-NFP lows, at 136.49 and 105.20 respectively. A decent 2027 UK auction has not provided much traction awaiting scheduled comments from BoE’s Pill, and looming German linker sale results are highly unlikely to rock the boat either, while ECB’s Villeroy contends that the peak in inflation is approaching and the GC’s job is less difficult as a result of the improved Eurozone economic environment. Elsewhere, US Treasuries are treading water ahead of trade data and eagerly anticipated remarks from Fed Chair Powell to see if the latest BLS survey findings prompt a hawkish response in keeping with the reaction from Bostic.

07 Feb 2023 - 10:29- Fixed IncomeResearch Sheet- Source: Newsquawk