EUROPEAN FIXED INCOME UPDATE: debt futures very volatile and indecisive

Analysis details (11:08)

The lack of depth may well have been a factor in terms of whipsaw price action and sometimes random moves in bonds, but in truth US Treasuries remained relatively constant and depressed amidst a big block trade in the 10 year note (nearly 11k) that some believe to have been a sale. Moreover, EGBs have retained an underlying bid for the most part amidst mixed Eurozone manufacturing PMIs and yet another bleak snapshot of the German economy via the VDMA, while Gilts have lost momentum after an upward tweak to the final UK PMI offset contrasting Citi/YouGov inflation expectations. Looking at ranges, Bunds extended their rebound from 133.62 to 134.14 before fading, Gilts recoiled further from 95.55 to 95.10 and the T-note is hovering a fraction over 112-00 within a 112-06/111-29 range ahead of the final US manufacturing PMI, ISM, construction spending and an early pre-July 4th close.

03 Jul 2023 - 11:08- Research Sheet- Source: Newsquawk