June 24, 2022 09:23 GMT
- It was a busy early start for EGBs, Bund and Rates (Euribor).
- Short end 2yr, 5yr and 3 Months took the lead, as investors reprice Rate path outlook.
- This resulted in a 167 ticks range for Bund, rallying through 148.00 and printing a 149.00 high.
- Contracts have since reversed most of their rallies, likely driven by some position covering.
- Bund is back in the red at 147.77, with a 147.33 low at the time of typing.
- Peripherals spreads are mixed, Greece is 3.9bps tighter, while Italy is 2.2bps wider against the German 10yr.
- UK Retail data, saw M/M prints 2 tenths better but downward revisions lead to lower Y/Y prints.
- April revision was largely due to the annual SA adjustments - rather than an actual big downward revision in the raw data.
- US Treasuries took their cue from the price action in Europe, and rallied with the German Bund, and have now also reversed to trade back to flat in Tnotes.
- Looking ahead, US Michigan is the final reading.
- More focus on speakers, given the latest set of data, and recession right at the forefront.
- Today includes, ECB Centeno, de Cos, Guindos, Fed Bullard, Daly, and BoE Pill, Haskel.