EUROPEAN FIXED INCOME UPDATE: whip-saw trade in debt futures

Analysis details (11:07)

Bonds look somewhat caught in the headlights or crossfire between mainly hawkish global Central Bank policy cycles and perceptions on the one side and consolidatory price action amidst the bear run on the other, as the Chinese pandemic and Russian invasion of Ukraine raise the prospect of stagflation/recession. Bunds are also taking on board a so-so 2038 German offering with Greece’s 5 year syndication at the margin, while Gilts are mulling a long-dated linker in context of the DMO upping its remit for the current fiscal year only yesterday. Looking at levels in more detail, the core Eurozone debt futures is just below par within 155.77-154.82 Eurex parameters, its UK equivalent is lagging towards the base of a 119.25-72 range irrespective of a dire CBI retail survey and the 10 year T-note is also closer to lows between a 120-18+/119-29 band with 5 year supply still to come.

27 Apr 2022 - 11:06- Fixed IncomeResearch Sheet- Source: Newsquawk