EUROPEAN FIXED INCOME UPDATE: turnaround Tuesday for EZ debt, thus far

Analysis details (11:13)

It’s far too premature to make any bold assessment or draw firm conclusions, but the latest recovery in Eurozone bonds is pretty pronounced and perhaps fuelled by a similarly emphatic retracement in crude prices from yesterday’s even loftier multi-year peaks. Indeed, Bunds have been back on the 166.00 handle at 166.11 vs 165.37 at the Eurex low and BTPs just over 141.00 compared to under 139.75 as a better indicator of relief in light of rhetoric from the ECB that seems to have allayed some excessively hawkish expectations. Conversely, Gilts remain depressed and just off a new Liffe trough between 120.96-74 extremes and the 10 year T-note soft albeit closer to the top of its 126-29+/15+ overnight range. UK debt may be somewhat supply-laden as books build for the DMO’s new 2071 syndication and the size has been set at Gbp 4.25 bn.

08 Feb 2022 - 11:13- Fixed Income- Source: newsquawk