EUROPEAN FIXED INCOME UPDATE: very volatile and divergent trade in debt

Analysis details (10:37)

Bunds have seen more whippy price action and range extension on both sides as a fresh cycle low was set at 150.75 compared to a new 151.37 Eurex intraday high before conditions calmed down and the core Eurozone bond appeared to glean support from ongoing weakness at the margins where BTPs remain heavy in the run up to details of Italy’s next multi-tranche issuance expected later this week. Conversely, Gilts and the 10 year T-note are still lagging between 117.14-64 and 117-27/11+ respective parameters, and bear-steepening is becoming more pronounced along the Treasury curve ahead of the Quarterly Refunding and US CPI data on Wednesday. More immediately, employment trends, wholesale inventories, Fed’s Kaskari and Bostic are on tap today, plus a speech from BoE hawk Saunders.

09 May 2022 - 10:37- Fixed IncomeData- Source: Newsquawk