EUROPEAN FIXED INCOME UPDATE: UK debt concedes more ground than others

Analysis details (10:45)

Gilts were more inclined to track the broader bounce in bonds than deviate in consideration of better than forecast domestic data, but couldn’t ignore the fact that this adversely impacted the set-up for 2033 DMO supply via a lack of concession. Hence, the lower cover ratio and longer tail outweighed a decline in average yield as the 10 year bond retreated through parity and further away from its early Liffe best to a deeper 103.69 low (-9 ticks vs +½ point at one stage), while BTPs remain firm in wake of a more comfortable mid-month Italian sale, Bunds above 136.00 within a 136.56-135.99 range and the T-note closer to 113-01+ top than 112-26+ bottom ahead of US CPI and a quartet of Fed speakers.

14 Feb 2023 - 10:45- Research Sheet- Source: Newsquawk