EUROPEAN FIXED INCOME UPDATE: strong bounce in bonds to/through prior peaks

Analysis details (10:54)

It looked like consolidation and calm after the latest storm whipped up by US data, or positioning and perceptions around median forecasts to be more precise, but debt futures garnered more bullish momentum to embark on another rally that saw Bunds get to within 3 ticks of their post-CPI peak, while Gilts and the T-note both registered loftier highs in the slipstream. There was a volume spike in the core Eurozone bond that analysts at IFR suggest may have been linked to a large clip or options hedge, but it stalled at 139.06 vs 104.94 and 115-15+ in Gilts and their US peer against intraday peaks of 104.80 and 115-13+ respectively on Thursday. However, the buying has subsided awaiting ECB TLTRO repayment details for the latest window, US import/export prices, prelim Michigan sentiment and inflation expectations, plus more Fed speakers.  

13 Jan 2023 - 10:54- Research Sheet- Source: Newsquawk