[MARKET ANALYSIS] Fixed income benefiting from a haven bid, as tech continues to selloff

Global fixed benchmarks are firmer across the board as government debt returns as a place of safety, with tech stocks weighing on the broader equity space. Energy prices also continue to fall, which further drives the fixed-income space higher.
Bunds (+17 ticks) have extended on Thursday's high to make a new WTD high, currently trading at the upper end of the 127.25-127.64 range. The ECB released its May Consumer Expectations Survey, in which it showed consumers expect inflation to fall to 3.5% next year, down from April's 4% figure. This comes as a surprise, as the survey was conducted before the signing of the US-Iran MoU. Despite this, the German benchmark was unreactive. In terms of market pricing, the ECB is still expected to hike once more by year-end, with only a 12% chance of two more hikes.
USTs (+5 ticks) are bid, trading at the top end of their 110-00+ to 110-09+ band, with the 10yr yield touching 4.37%. The MOVE index has completely reversed the wartime bid seen at the start of the Iran war, and with BofA's weekly flow report showing USD 16.6bln of flows into bonds, it potentially shows a renewed demand for debt. Looking ahead, a lack of tier 1 data, with final University of Michigan figures ahead, while Fed's Kashkari is also expected to be on the wires.
Gilts (+9 ticks) remain on high alert for any updates on who the newly-appointed MP (and expected PM) Burnham will choose for Chancellor, with Reeves not expected to stay in the role. More recently, The Times's Swinford reported that it will more likely be a two-horse race between Ed Miliband and Shabana Mahmood, with people close to Streeting stating that they do not think he will get the job. The fact that Miliband is still in the running could put a ceiling on gilts.