Fixed Income: small EU range extension, but marked US bull flattening

Not much additional movement or price action in EU bonds, but Bunds and Gilts did slip to fresh lows on Eurex and Liffe, at 159.43 and 121.66 (+9 and +10 ticks vs +29 and +32 ticks at the earlier intraday peaks), as BTPs extended their topside to 121.62 (+77 ticks vs -68 ticks at one stage). However, the latter have subsequently drifted back towards 121.00 awaiting the EU verdict and core 10 year benchmarks have ticked back up in response. Conversely, US Treasuries have rallied quite sharply to post new overnight session peaks and the curve has flattened considerably amidst the downturn in global stocks and risk sentiment, with perhaps an element of pre-2 year issuance positioning also impacting.

23 Oct 2018 - 10:42- - Source: RANsquawk